Action Alert No. 05-36
September 8, 2005


(Board meetings are available by audio webcast and telephone.)

Wednesday, September 14, 2005, 9:00 a.m.

  1. Insurance risk transfer. The Board will consider a working draft of definitions of insurance terms and related supplemental guidance based on IFRS 4, Insurance Contracts. (Estimated 60-minute discussion.)

  2. Fair value measurement. The Board will continue redeliberations of the FASB Exposure Draft, Fair Value Measurements. The Board will discuss the timing of a final Statement and address issues of effective date and transition. (Estimated 60-minute discussion.)

  3. Measuring fair value of certain derivative contracts under Statement 133. The Board will discuss the timing of a draft of a proposed FSP and address issues of effective date and transition. (Estimated 30-minute discussion.)

  4. Other-than-temporary impairment. The Board will discuss whether to retain the guidance within proposed FSP EITF 03-1-a, “Implementation Guidance for the Application of Paragraph 16 of EITF Issue No. 03-1,” for the accounting for debt securities subsequent to an other-than-temporary impairment and provide transition for this specific paragraph. (The final FSP will be retitled FSP FAS 115-1, “The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments.”) (Estimated 30-minute discussion.)

  5. Mutual understanding of the key terms of a share-based payment arrangement with an employee. The Board will discuss whether to provide practical implementation guidance related to the requirement in FASB Statement No. 123 (revised December 2004), Share-Based Payment, that a mutual understanding of the key terms and conditions of a share-based payment arrangement with an employee must be attained in order to establish the grant date of the award. (Estimated 30-minute discussion.)

  6. 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.


Tuesday, September 13, 2005, 9:00 a.m.
Wednesday, September 14, 2005, 8:00 a.m.
Wednesday, September 14, 2005, following the Board meeting

The Board will hold educational, non-decision-making sessions to discuss topics that are anticipated to be discussed at the September 21, 2005 Board meeting. Those topics will be posted to the FASB calendar four days prior to the education session.


Monday, September 12, 2005, 9:00 a.m.

The Board will meet with members of the Creditworthiness Resource Group to listen to their views and obtain information about whether the portion of the change in a liability’s fair value attributable only to changes in the debtor’s creditworthiness should be precluded from being recognized in the debtor’s financial statements (or at least not recognized in the debtor’s earnings).

(This meeting is available by audio webcast and telephone.)

Thursday, September 15, 2005, 10:00 a.m. – 4:00 p.m.

The Task Force plans to discuss all of the following issues in the order shown:

  1. Issue No. 05-7, "Accounting for Modifications to Conversion Options Embedded in Debt Securities and Related Issues"

  2. Issue No. 04-13, "Accounting for Purchases and Sales of Inventory with the Same Counterparty"

  3. Issue No. 05-1, "Accounting for the Conversion of an Instrument That Becomes Convertible upon the Issuer's Exercise of a Call Option"

  4. Issue No. 05-8, "Income Tax Consequences of Issuing Convertible Debt with a Beneficial Conversion Feature."

The Task Force also plans to clarify the consensus reached at the June 15–16, 2005 EITF meeting on Issue No. 05-6, "Determining the Amortization Period for Leasehold Improvements Purchased after Lease Inception or Acquired in a Business Combination."


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 Interpretation.

August 31, 2005 Board Meeting

Financial performance reporting by business enterprises. The Board decided that the following issues relating to financial reporting for interim periods should be addressed in this project:

  1. Which financial statements, if any, should be required to be presented in an interim financial report.

  2. Whether financial statements required in an interim financial report should be allowed to be presented in a condensed format and, if so, whether the Board should provide guidance related to how the information may be condensed.

  3. What comparative periods, if any, should be required to be allowed in interim financial reports and when, if ever, should 12-months-to-date financial statements be required or allowed to be presented in interim financial reports.

  4. Whether guidance for private companies should differ from guidance for public companies.

The Board decided that those issues should be addressed as a separate segment of the project to be worked on after or near the completion of the segment B phase of the project.


The following is a list of open meetings tentatively scheduled through October. 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 19, 2005—Liaison Meeting with the AICPA PCPS Technical Issues Committee
Wednesday, September 21, 2005—FASB Board Meeting
Wednesday, September 21, 2005—No FASB Education Session Scheduled
Thursday, September 22, 2005—Financial Accounting Standards Advisory Council Meeting
Friday, September 23, 2005—Liaison Meeting with the Institute of Management Accountants
Wednesday, September 28, 2005—FASB Board Meeting
Wednesday, September 28, 2005—FASB Education Session
Thursday, September 29, 2005—User Advisory Council Meeting, New York City
Wednesday, October 5, 2005—FASB Board Meeting
Wednesday, October 5, 2005—FASB Education Session
Monday, October 10, 2005—Uncertain Tax Positions Roundtable Meeting
Wednesday, October 12, 2005—FASB Board Meeting
Wednesday, October 12, 2005—FASB Education Session
Friday, October 14, 2005—Liaison Meeting with the National Investor Relations Institute
Tuesday, October 18, 2005—FASB Education Session
Wednesday, October 19, 2005—FASB Board Meeting
Monday, October 24, 2005—Joint IASB/FASB Meeting
Tuesday, October 25, 2005—Joint IASB/FASB Meeting
Wednesday, October 26, 2005—FASB Insurance Forum
Thursday, October 27, 2005—Business Combinations Roundtable Meetings