Action Alert No. 08-15
April 10, 2008
NOTICE OF MEETINGS
OPEN BOARD MEETING
meetings are available by audio webcast and telephone.)
Wednesday, April 16, 2008, 9:00 a.m.
reporting by entities in reorganization under the bankruptcy
code (estimated 30-minute discussion). The Board will
discuss issues raised by respondents to proposed FSP SOP 90-7-a, An
Amendment of AICPA Statement of Position 90-7, and whether to issue
that FSP as final.
- 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, April 16, 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.
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.
April 2, 2008 Board Meeting
140 implementation—transfers of financial assets. The Board
decided to remove the concept of a qualifying special-purpose entity from
FASB Statement No. 140, Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities, and FASB
Interpretation No. 46 (revised December 2003), Consolidation of
Variable Interest Entities.
The Board also decided to amend the derecognition criteria in Statement
140 to improve financial reporting in the short term and to consider
working on a joint derecognition research project with the IASB.
Specifically, the Board voted to amend paragraphs 9(a) and 9(c) and to
remove paragraph 9(b). Paragraph 9(a) will be clarified to require that
the transferred financial assets must be beyond the reach of the
transferor or any of its consolidated affiliates. Additionally, the
isolation analysis must consider all arrangements made in connection with
the transfer. Paragraph 9(c) will be amended to include an additional
criterion that states that if the transferor constrains the transferee,
the transferor maintains effective control over the transferred assets.
This change incorporates similar requirements from current paragraph
Lastly, the Board decided that only an entire financial asset or a
participating interest of an individual financial asset will be eligible
for derecognition. The participating interest may not be an interest in an
equity instrument, a derivative financial instrument, or a hybrid
financial instrument with an embedded derivative not clearly and closely
related to the original financial asset. Additionally, the definition of a
participating interest requires that (1) the cash flows received from the
assets are divided among the interests in proportion to the share of
ownership represented by each, (2) the participating interest holders have
no recourse, other than standard representations and warranties, to the
transferor or each other, (3) no interest holder is subordinated to
another, and (4) neither the transferor nor any participating interest
holder has the right to pledge or exchange the entire financial asset in
which it owns a participating interest.
discussion: agenda decision—credit derivatives. The FASB chairman
announced a project that will consider improvements to disclosures about
credit derivatives accounted for under FASB Statement No. 133,
Accounting for Derivative Instruments and Hedging Activities, was
added to the Board’s agenda.
FUTURE OPEN MEETINGS
The following is a list of open meetings tentatively scheduled through
May. 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, April 21, 2008—FASB/IASB Joint Board Meeting,
Tuesday, April 22, 2008—FASB/IASB Joint Board Meeting,
Thursday, April 24, 2008—FASB Education Session
April 30, 2008—FASB Board Meeting
Wednesday, April 30, 2008—FASB
Tuesday, May 6, 2008—FASB Insurance
Wednesday, May 7, 2008—FASB Board Meeting
Wednesday, May 7,
2008—FASB Education Session
Wednesday, May 14, 2008—FASB Board
Wednesday, May 14, 2008—FASB Education Session
May 21, 2008—FASB Board Meeting
Wednesday, May 21, 2008—FASB Education
Thursday, May 22, 2008—Liaison Meeting with Healthcare
Financial Management Association
Wednesday, May 28, 2008—FASB Education