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Action Alert No. 04-26
July 8, 2004
NOTICE OF MEETINGS
OPEN BOARD MEETING
(Board
meetings are available by audio webcast and telephone.)
The Board meeting will be held on Friday instead of
Wednesday.
Friday, July 16, 2004, 9:00 a.m.
- FASB Staff Position (FSP). The Board will consider whether to
direct the staff to issue a proposed FSP on the application of FASB
Statement No. 142, Goodwill and Other Intangible Assets, to
exchange memberships. (Estimated 15-minute discussion.)
- FASB
ratification of an EITF consensus. The Board will consider the
ratification of the consensus reached at the June 30–July 1, 2004 EITF
meeting. See discussion under EITF ACTIONS. The Board also will discuss
the tentative conclusions reached by the EITF in Issue 04-8, “The Effect
of Contingently Convertible Debt on Diluted Earnings per Share.”
(Estimated 30-minute discussion.)
- Financial
instruments: liabilities and equity. The Board will discuss
various possible characteristics for distinguishing liabilities and
assets from equity. (Estimated 60-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, July 14, 2004, 9:00 a.m.
The Board will hold an educational, non-decision-making session to
discuss topics that are anticipated to be discussed at the July 16 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 or
Interpretation.
June 30, 2004 Board Meeting
Business
combinations: purchase method procedures. The Board decided to use
the more descriptive title “Consolidated Financial Statements, including
Accounting and Reporting of Noncontrolling Interests in Subsidiaries; a
replacement of ARB 51” for the forthcoming Exposure Draft that will
solicit comments on the Board’s proposals for noncontrolling interests. It
also made the following decisions with respect to the proposed accounting
for and reporting of noncontrolling interests in subsidiaries:
- To include guidance for determining when a series of transactions
that result in the loss of control of a subsidiary would be accounted
for as a single transaction
- To exclude from the Exposure Draft the requirement in ARB No. 51,
Consolidated Financial Statements, that an entity disclose its
consolidation policy
- Not to extend the decisions reached related to the loss of control
of a subsidiary to events or transactions in which an investor loses
“significant influence” over an investee
- Not to require separate reporting of the noncontrolling interest in
each of the components of a subsidiary's equity on the face of a
consolidated statement of financial position.
EITF ACTIONS
June 30–July 1, 2004 EITF Meeting
The task force discussed the following issues:
- Issue No. 02-14, "Whether an Investor Should Apply the Equity Method
of Accounting to Investments Other Than Common Stock." A consensus was
reached. The Board will consider the ratification of that consensus at
its July 16, 2004 meeting.
- Issue No. 03-9, "Determination of the Useful Life of Renewable
Intangible Assets under FASB Statement No. 142, Goodwill and Other
Intangible Assets." This Issue will be discussed further at a future
meeting.
- Issue No. 03-13, "Applying the Conditions in Paragraph 42 of FASB
Statement No. 144, Accounting for the Impairment or Disposal of
Long-Lived Assets, in Determining Whether to Report Discontinued
Operations." This Issue will be discussed further at a future meeting.
- Issue No. 04-1, "Accounting for Preexisting Relationships between
the Parties to a Business Combination." This Issue will be discussed
further at a future meeting.
- Issue No. 04-5, "Investor's Accounting for an Investment in a
Limited Partnership When the Investor Is the Sole General Partner and
the Limited Partners Have Certain Rights." This Issue will be discussed
further at a future meeting.
- Issue No. 04-6, "Accounting for Post-Production Stripping Costs in
the Mining Industry." This Issue will be discussed further at a future
meeting.
- Issue No. 04-7, "Determining Whether an Interest Is a Variable
Interest in a Variable Interest Entity." This Issue will be discussed
further at a future meeting.
- Issue No. 04-8, "The Effect of Contingently Convertible Debt on
Diluted Earnings per Share." A tentative conclusion was reached. The
Board will discuss that tentative conclusion at its July 16, 2004
meeting. The FASB staff will post a draft abstract to the FASB website
on or about July 16, 2004, for a 45-day comment period. The task force
will consider the comments received before reaching a final consensus.
EITF
meeting materials and minutes now are available for downloading
from the FASB website.
FUTURE OPEN MEETINGS
The following is a list of open meetings tentatively scheduled through
August. 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.
Tuesday, July 20, 2004—FASB Education Session
Wednesday, July 21,
2004—No FASB Board Meeting
Monday, July 26, 2004—Liaison Meeting
with the Edison Electric Institute
Tuesday, July 27, 2004—FASB Board
Meeting
Tuesday, July 27, 2004—FASB Education Session
Wednesday,
August 4, 2004—FASB Board Meeting
Wednesday, August 4, 2004—FASB
Education Session
Wednesday, August 11, 2004—FASB Board
Meeting
Wednesday, August 11, 2004—FASB Education Session
Wednesday,
August 18, 2004—FASB Board Meeting
Wednesday, August 18, 2004—FASB
Education Session
Wednesday, August 25, 2004—FASB Board
Meeting
Wednesday, August 25, 2004—FASB Education Session
Friday,
August 27, 2004—Liaison Meeting with the Financial Managers
Society
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