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Action Alert No. 08-38
September 18, 2008
NOTICE OF MEETINGS
OPEN BOARD MEETING
(Board
meetings are available by audio webcast and telephone.)
Wednesday, September 24, 2008, 9:00 a.m.
- Revenue
recognition (estimated 1-hour discussion). The Board will
discuss subsequent measurement of performance obligations in contracts
with customers. Specifically, the Board will consider the key issues of
an onerous test and whether remeasurement is needed in instances other
than when performance obligations are deemed onerous.
- Contingency
disclosures (estimated 30-minute discussion). The Board
will decide on a plan for redeliberating its Exposure Draft,
Disclosure of Certain Loss Contingencies.
- Mergers and
acquisitions by a not-for-profit organization (estimated
90-minute discussion). The Board will discuss whether to require a
different method of accounting for a merger of not-for-profit
organizations than that required for an acquisition and, if so, how it
should define a merger. The Board also will decide whether to retain the
net asset approach to initial recognition and measurement of
acquisitions and the subsequent accounting for any goodwill recognized.
- Disclosures
about plan assets (estimated 1-hour discussion). The
Board will continue redeliberations of proposed FSP FAS 132(R)-a,
Employers’ Disclosures about Postretirement Benefit Plan Assets.
Specifically, the Board will decide whether and how to revise the
proposed disclosures about categories of plan assets and concentrations
of risk.
- FASB
ratification of EITF consensuses and tentative conclusions
(estimated 30-minute discussion). The Board will decide whether
to ratify the consensuses reached at the September 10, 2008 EITF
meeting. (See discussion under EITF ACTIONS.)
- Open discussion. If necessary, the Board will allow time to
discuss minor issues with staff members on technical projects or
administrative matters. Those discussions are held following regular
Board meetings as topics come up.
OPEN EDUCATION SESSION
Wednesday, September 24, 2008, following the Board meeting
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
No Board meetings were held during the week of September 8,
2008.
EITF ACTIONS
September 10, 2008 EITF Meeting
The Task Force discussed the following issues:
- Issue No. 08-1, "Revenue Recognition for a Single Unit of
Accounting." The Task Force discussed recommendations of the Working
Group on this Issue, including specific practice issues that were
identified and discussed by the Working Group. The Task Force agreed
that this Issue should provide specific guidance on the
objective-and-reliable-evidence-of-fair-value threshold of EITF Issue
No. 00-21, "Revenue Arrangements with Multiple Deliverables," and on the
application of the milestone method of revenue recognition.
The Task Force instructed the staff (a) to seek user input on the
scope of the Issue and on whether to require additional disclosures
related to revenue recognition (within the scope of this Issue) and (b)
to develop examples of the application of the milestone method. This
Issue will be discussed further at a future meeting.
- EITF Issue No. 08-5, "Issuer's Accounting for Liabilities Measured
at Fair Value with a Third-Party Credit Enhancement." The Task Force
affirmed as a consensus the consensus-for-exposure reached at the June
12, 2008 EITF meeting with certain amendments to clarify the basis of
the Task Force's decisions.
The Task Force reached a consensus that this Issue should apply to a
liability with an inseparable third-party credit enhancement (for
example, debt issued with a contractual third-party guarantee) when the
liability is measured or disclosed at fair value. This Issue does not
apply to a credit enhancement provided by the government or government
agencies (for example, deposit insurance). This Issue does not apply to
a liability issued with an inseparable third-party credit enhancement
(for example, debt issued with a contractual third-party guarantee) when
the liability is measured or disclosed at an amount other than fair
value.
The Task Force reached a consensus that this Issue should be
effective on a prospective basis in the first reporting period beginning
on or after December 15, 2008. The effect of initially applying the
guidance in this Issue should be included in the change in fair value in
the period of adoption. Earlier application is permitted. The Task Force
also reached a consensus that in the period of adoption an entity should
disclose the valuation technique(s) used to measure the fair value of
liabilities in the scope of this Issue and include a discussion of
changes, if any, from the valuation techniques used to measure those
liabilities in prior periods.
The Board will consider the ratification of the consensus in this
Issue at its September 24, 2008 meeting.
- Issue No. 08-6, "Equity Method Investment Accounting
Considerations." For all investments accounted for under the equity
method, the Task Force reached a consensus-for-exposure that this Issue
should apply to all investments accounted for under the equity method.
The Task Force reached a consensus-for-exposure that this Issue
should be effective for transactions occurring in fiscal years, and
interim periods within those fiscal years, beginning on or after
December 15, 2008, consistent with the effective dates of FASB
Statements No. 141 (revised 2007), Business Combinations, and No.
160, Noncontrolling Interests in Consolidated Financial
Statements. Earlier application by an entity that has previously
adopted an alternative accounting policy is not permitted. The Task
Force reached a consensus-for-exposure that the guidance in this Issue
should be applied prospectively.
The Board will consider the ratification of the
consensus-for-exposure in this Issue at its September 24, 2008 meeting.
If ratified, a draft abstract will be posted to the FASB website for
public comment. This Issue will be discussed further at a future
meeting.
- EITF Issue No. 08-7, "Accounting for Defensive Intangible Assets."
The Task Force reached a consensus-for-exposure that this Issue should
apply to all intangible assets acquired, including intangible assets
acquired in a business combination, in which the acquirer does not
intend to actively use the asset but intends to hold (lock up) the asset
to prevent its competitors from obtaining access to the asset (a
defensive intangible asset). Defensive intangible assets could include
assets that the acquirer will never actively use, as well as assets that
will be used by the acquirer during a transition period when the
intention of the acquirer is to discontinue the use of the assets. This
Issue does not address the identification of market participants, market
participant assumptions, or valuation issues associated with defensive
intangible assets.
The Task Force reached a consensus-for-exposure that this Issue
should be applied prospectively for intangible assets acquired on or
after the beginning of the first annual reporting period beginning on or
after December 15, 2008, to coincide with the effective date of
Statement 141(R).
The Board will consider the ratification of the
consensus-for-exposure in this Issue at its September 24, 2008 meeting.
If ratified, a draft abstract will be posted to the FASB website for
public comment. This Issue will be discussed further at a future
meeting.
- EITF Issue No. 08-8, "Accounting for an Instrument (or an Embedded
Feature) with a Settlement Amount That Is Based on the Stock of an
Entity's Consolidated Subsidiary." The Task Force reached a
consensus-for-exposure that this Issue should apply to freestanding
financial instruments (and embedded features) for which the payoff to
the counterparty is based, in whole or in part, on the stock of a
consolidated subsidiary for purposes of determining whether such
instruments (or embedded features) are precluded from being considered
indexed to the entity's own stock in the consolidated financial
statements of the parent. This Issue applies to those instruments (and
embedded features) in the consolidated financial statements of the
parent, whether the instrument was entered into by the parent or the
subsidiary. This Issue does not affect the accounting for instruments
that would not otherwise qualify for the scope exception in paragraph
11(a) of FASB Statement No. 133, Accounting for Derivative
Instruments and Hedging Activities (for example, instruments that
are classified as assets or liabilities pursuant to FASB Statement No.
150, Accounting for Certain Financial Instruments with
Characteristics of both Liabilities and Equity).
The Task Force reached a consensus-for-exposure that this Issue
should be effective for fiscal years, and interim periods within those
fiscal years, beginning after December 15, 2008. Earlier application is
not permitted. The consensus should be applied to outstanding
instruments as of the beginning of the fiscal year in which this Issue
is initially applied. The transition disclosures in paragraphs 17 and 18
of FASB Statement No. 154, Accounting Changes and Error
Corrections, should be provided.
The Board will consider the ratification of the
consensus-for-exposure in this Issue at its September 24, 2008 meeting.
If ratified, a draft abstract will be posted to the FASB website for
public comment. This Issue will be discussed further at a future
meeting.
FASB DOCUMENTS AVAILABLE
The following documents were issued and are available on the FASB
website:
Final
FSP FAS 133-1 and FIN 45-4, Disclosures about Credit
Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133
and FASB Interpretation No. 45; and Clarification of the Effective Date of
FASB Statement No. 161 (September 12, 2008).
FASB
Exposure Draft, Accounting for Transfers of Financial
Assets (September 15, 2008). Comments are requested by November 14,
2008.
FASB
Exposure Draft, Amendments to FASB Interpretation
No.
46(R) (September 15, 2008). Comments are requested by November 14,
2008.
Proposed
FSP FAS 140-e and FIN 46(R)-e, Disclosures about Transfers of
Financial Assets and Interests in Variable Interest Entities
(September 15, 2008). Comments are requested by October 15, 2008.
FUTURE OPEN MEETINGS
The following is a list of open meetings tentatively scheduled through
November. 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, October 1, 2008—FASB Board Meeting
Wednesday, October 1,
2008—FASB Education Session
Thursday, October 2, 2008—Liaison Meeting
with the Chartered Financial Analysts Institute (formerly
AIMR)
Wednesday, October 8, 2008—FASB Board Meeting
Wednesday,
October 8, 2008—FASB Education Session
Wednesday, October 15, 2008—FASB
Board Meeting
Wednesday, October 15, 2008—FASB Education
Session
Monday, October 20, 2008—FASB/IASB Joint Board Meeting,
Norwalk, CT
Tuesday, October 21, 2008—FASB/IASB Joint Board Meeting,
Norwalk, CT
Wednesday, October 22, 2008—FASB Education
Session
Wednesday, October 29, 2008—FASB Board Meeting
Wednesday,
October 29, 2008—FASB Education Session
Wednesday, November 5,
2008—FASB Board Meeting
Wednesday, November 5, 2008—FASB Education
Session
Tuesday, November 11, 2008—Investors Technical Advisory
Committee Meeting
Wednesday, November 12, 2008—FASB Board
Meeting
Wednesday, November 12, 2008—Emerging Issues Task Force
Meeting
Thursday, November 13, 2008—Emerging Issues Task Force
Meeting
Wednesday, November 19, 2008—FASB Board Meeting
Wednesday,
November 19, 2008—FASB Education Session
Tuesday, November 25,
2008—FASB Board Meeting
Tuesday, November 25, 2008—FASB Education
Session
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