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Action Alert No. 08-21
May 22, 2008
NOTICE OF MEETINGS
OPEN BOARD MEETING
(Board
meetings are available by audio webcast and telephone.)
No Board meetings are planned for the week of May 26, 2008. The next
scheduled Board meeting is Wednesday, June 4, 2008, and will be announced
in next week’s issue of Action Alert.
OPEN EDUCATION SESSION
Wednesday, May 28, 2008, 9:00 a.m.
The Board will hold an educational, non-decision-making session to
discuss topics that are anticipated to be discussed at a future Board
meeting. Those topics will be posted to the FASB calendar four
days prior to the education session.
BOARD ACTIONS
The Board Actions are provided for the information and convenience
of constituents who want to follow the Board’s deliberations. All of the
conclusions reported are tentative and may be changed at future Board
meetings. Decisions are included in an Exposure Draft for formal comment
only after a formal written ballot. Decisions in an Exposure Draft may be
(and often are) changed in redeliberations based on information provided
to the Board in comment letters, at public roundtable discussions, and
through other communication channels. Decisions become final only after a
formal written ballot to issue a final Statement, Interpretation, FSP, or
Statement 133 Implementation Issue.
May 14, 2008 Board Meeting
Revenue
recognition. The Board discussed a draft of Chapter 5,
"Measurement of the Contract," for the upcoming discussion paper on
revenue recognition. The Board suggested a number of changes for both the
structure and the content of the chapter. In addition, the Board voted on
the two measurement approaches and expressed a preliminary view in favor
of the customer consideration approach. The customer consideration
approach (1) measures performance obligations at the price (or value of
the consideration) promised by the customer at contract inception and (2)
subsequently remeasures performance obligations only if they become
onerous.
Reporting
discontinued operations. The Board agreed to the following
converged definition of discontinued operations:
A component of an entity that has been
(or will be) disposed of and meets the definition of an operating
segment under FASB Statement No. 131, Disclosures about Segments of
an Enterprise and Related Information, would be reported as a
discontinued operation on the face of the financial statements.
The Board also decided to include newly acquired subsidiaries that meet
the criteria to be classified as held for sale on acquisition in the above
definition of discontinued operations. The Board also supported
clarifying that the operating segment criterion is a classification
criterion and not a measurement criterion.
To reflect the noncontrolling interests guidance in FASB Statement No.
160, Noncontrolling Interests in Consolidated Financial Statements,
the Board decided to revise the tentative disclosure requirements for all
components of an entity that have been (or will be) disposed of, including
those reported as a discontinued operation. The following are the revised
additional disclosure requirements for all components of an entity that
have been (or will be) disposed of, including those reported as a
discontinued operation:
- The major classes of revenues and expenses, including impairments,
interest, depreciation, and amortization
- If a parent has one or more less-than-wholly-owned subsidiaries, net
income or loss attributable to the parent
- The major classes of cash flows (operating, investing, and
financing)
- The major classes of assets and liabilities
- The nature of the disposal activities and the use of the proceeds
from the disposal activities.
The Board felt further discussion was necessary to decide whether to
include the proposed IASB Board disclosure exemption for newly acquired
subsidiaries that meet the criteria to be classified as held for sale on
acquisition. It was unclear to the Board how this exemption would interact
with the disclosure requirements of FASB Statement No. 141 (revised 2007),
Business Combinations; therefore, the Board directed the staff to
perform additional research on this subject.
The Board decided that the amendments to FASB Statement No. 144,
Accounting for the Impairment or Disposal of Long-Lived Assets,
related to discontinued operations should be effective for financial
statements issued for fiscal years beginning after December 15, 2009, and
interim periods within those years. Earlier adoption would be permitted.
The Board also decided that the amendments to Statement 144 related to
discontinued operations should be applied retrospectively to all periods
presented. The Board supported a 120-day comment period for the proposed
FSP. The Board will further discuss the IASB Board disclosure exemption
for newly acquired subsidiaries and other potential issues at a future
Board meeting.
Agenda decision announcement. The FASB chairman announced that
the Board’s project to consider whether assets held for sale should be
measured at fair value instead of fair value less cost to sell, as
currently required under FASB Statement No. 144, Accounting
for the Impairment or Disposal of Long-Lived Assets, was removed
from the agenda. That decision was based on the results of staff
analysis and the IASB’s decision to remove a similar project from its
agenda.
FASB DOCUMENT AVAILABLE
Final FSP SOP
94-3-1 and AAG HCO-1, Omnibus Changes to Consolidation and
Equity Method Guidance for Not-for-Profit Organizations, was issued on
May 19, 2008, and is available on the FASB website.
FUTURE OPEN MEETINGS
The following is a list of open meetings tentatively scheduled through
July. Because schedules may change, please check the FASB calendar before
finalizing your plans. Revisions to this list since the last issue of
Action Alert are highlighted in bold.
Wednesday, June 4, 2008—FASB Board Meeting
Wednesday, June 4,
2008—FASB Education Session
Tuesday, June 10, 2008—Investors Technical
Advisory Committee Meeting
Wednesday, June 11, 2008—FASB Board
Meeting
Wednesday, June 11, 2008—FASB Education Session
Thursday,
June 12, 2008—Emerging Issues Task Force Meeting
Monday, June 16,
2008—FAF/FASB Forum on High-Quality Global Accounting Standards: Issues
and Implications for U.S. Financial Reporting, New York City
Wednesday,
June 18, 2008—FASB Board Meeting
Wednesday, June 18, 2008—FASB
Education Session
Thursday, June 19, 2008—Liaison Meeting with
Financial Executives International, Stamford, CT
Tuesday, June 24,
2008—Financial Accounting Standards Advisory Council Meeting
Wednesday,
June 25, 2008—FASB Board Meeting
Wednesday, June 25, 2008—FASB
Education Session
Friday, June 27, 2008—Small Business Advisory
Committee Meeting
Thursday, July 3, 2008—FASB Education
Session
Wednesday, July 9, 2008—FASB Board Meeting
(tentative)
Wednesday, July 9, 2008—FASB Education
Session
Wednesday, July 16, 2008—FASB Board Meeting
Wednesday, July
16, 2008—FASB Education Session
Wednesday, July 23, 2008—FASB Board
Meeting
Wednesday, July 23, 2008—FASB Education Session
Wednesday,
July 30, 2008—FASB Board Meeting
Wednesday, July 30, 2008—FASB
Education Session
†FASB Meetings Available by Audio Webcast and
Telephone
To monitor available live meetings free of charge by audio
webcast, access the link http://www.trz.cc/fasb/live.html. To monitor by
telephone, call 1-800-846-4717. You will be charged $.45 per minute, and
VISA, MasterCard, American Express, or Discover Card is required. To
listen to a recording of the most recent Board meeting via webcast free of
charge, access the link http://www.trz.cc/fasb/archive.html. To listen to a
recording by telephone, for a charge of $.45 per minute, call
1-800-462-0393. Questions can be directed to 1-800-846-4630.
Handouts
distributed to the audience at Board meetings are posted to our website
one-half hour before the start of the meeting. A synopsis of each
issue to be discussed at EITF meetings also is posted to this
website.
Education sessions are not available by audio webcast or
telephone, and no handouts are distributed to the
audience.
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