Action Alert No. 05-35
September 1, 2005
NOTICE OF MEETINGS
OPEN BOARD MEETING
meetings are available by audio webcast and telephone.)
Wednesday, September 7, 2005, 9:00 a.m.
interest entities. The Board will discuss whether to issue a
draft of a proposed FSP on determining the variability to be considered
when applying FASB Interpretation No. 46 (revised December 2003),
Consolidation of Variable Interest Entities. (Estimated 60-minute
impairment. The Board will discuss whether to provide transition
for the accounting for debt securities subsequent to an
other-than-temporary impairment and whether to proceed with drafting the
final FSP. (Estimated 30-minute discussion.)
- 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 7, 2005, following the Board meeting
The Board will hold an educational, non-decision-making session to
discuss topics that are anticipated to be discussed at the September 14,
2005 Board meeting. Those topics will be posted to the FASB calendar four
days prior to the education session.
OPEN MEETING WITH REPRESENTATIVES OF THE CFA INSTITUTE
Friday, September 9, 2005, 12:30 p.m.
The Board will meet with representatives of the Corporate Disclosure
Policy Committee of the CFA Institute to discuss matters of mutual
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 or
August 24, 2005 Board Meeting
hierarchy. The Board reconsidered certain aspects of the April 28,
2005 FASB Exposure Draft, The Hierarchy of Generally Accepted
Accounting Principles. In response to comments raised by constituents,
the Board reconsidered and subsequently affirmed its previous decisions on
- The language in footnote 1 related to the SEC literature should
- The Rule 203 exception should not be carried forward from AICPA
Statement on Auditing Standards No. 69, The Meaning of Present
Fairly in Conformity With Generally Accepted Accounting Principles.
- EITF consensuses should remain in category (c) in the GAAP
- FASB Staff Positions (FSPs), Statement 133 Implementation Issues,
and Technical Bulletins should remain unchanged from the Exposure Draft.
Additionally, in response to comments raised by constituents, the Board
decided on the following changes to the Exposure Draft:
- Paragraph 5 of the Exposure Draft should be amended as follows:
If the accounting treatment for a transaction or event is not
specified by a pronouncement or practice described in categories
(a)–(d), an enterprise shall first consider accounting
principles for similar transactions or events within categories
(a)–(d) and then other accounting literature.
- AICPA Industry Audit and Accounting Guides that have not been
cleared by the Board should be included in category (d) of the
- The effective date will be consistent with the effective dates of
the AICPA and PCAOB documents and will be determined by the staff when
the final release date of the other documents is known.
- In the rare instance that application of the final Statement results
in a change in accounting, enterprises should account for this as a
change in accounting principle in accordance with FASB Statement No.
154, Accounting Changes and Error Corrections. Enterprises should
clearly disclose the accounting principle that was used both before and
after the application of the provisions of the final Statement.
Additionally, enterprises should disclose the reason why applying the
Statement resulted in a change in accounting principle.
The Board also agreed to several minor wording changes to the final
NOTICE OF OPEN ROUNDTABLE DISCUSSIONS WITH RESPONDENTS TO THE
BUSINESS COMBINATION EXPOSURE DRAFTS
The FASB and the IASB will hold public roundtable discussions with
respondents to their June 30, 2005 Exposure Drafts, Business
Combinations, and Consolidated Financial Statements, Including
Accounting and Reporting of Noncontrolling Interests in Subsidiaries.
Those discussions are scheduled for Thursday, October 27, 2005, in
Norwalk, Connecticut, and Wednesday, November 9, 2005, in London, England.
All FASB members and certain IASB Board members are expected to
participate in the Norwalk roundtables. All IASB members and certain FASB
members are expected to participate in the London roundtables.
Individuals or organizations interested in participating in the
roundtable discussions should submit a request to participate via email to
September 15, 2005. That request must specify the date and location of the
preferred roundtable and the name, title, affiliation, telephone number,
and email address of the individual that will participate. Due to space
limitations, participation is limited to one individual per organization.
Organizations wishing to participate in both roundtables may request to do
so and, depending on space availability, may be invited to participate in
Individuals and organizations that want to participate in the
roundtable discussions are required to submit their comment letter on the
Exposure Drafts or a summary of key issues that will be raised in their
comment letter by September 23, 2005. We will use the draft comments and
summaries solely for the purposes of the roundtable and selecting
The FASB will notify individuals about their selection status by
September 30, 2005.
FASB DOCUMENT AVAILABLE
FSP FAS 123(R)-1, “Classification and Measurement of Freestanding
Financial Instruments Originally Issued in Exchange for Employee Services
under FASB Statement No. 123(R),” was issued on August 31, 2005, and is
available on the FASB website.
FUTURE OPEN MEETINGS
The following is a list of open meetings tentatively scheduled through
September. 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.
Monday, September 12, 2005—FASB Credit Worthiness Resource Group
Wednesday, September 14, 2005—FASB Board
Wednesday, September 14, 2005—FASB Education
Thursday, September 15, 2005—FASB Emerging Issues Task Force
Monday, September 19, 2005—Liaison Meeting with the AICPA PCPS
Technical Issues Committee
Wednesday, September 21, 2005—FASB Board
Wednesday, September 21, 2005—No FASB Education Session
Thursday, September 22, 2005—Financial Accounting
Standards Advisory Council Meeting
Friday, September 23, 2005—Liaison
Meeting with the Institute of Management Accountants
September 28, 2005—FASB Board Meeting
Wednesday, September 28,
2005—FASB Education Session
Thursday, September 29, 2005—User Advisory
Council Meeting, New York City