Action Alert No. 05-02
January 13, 2005


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

Wednesday, January 19, 2005, 9:00 a.m.

  1. Short-term convergence: income taxes. The Board will consider certain differences between the provisions of FASB Statement No. 109, Accounting for Income Taxes, and IAS 12, Income Taxes, related to the tax rate to be used in measuring deferred tax assets and liabilities. The Board also will discuss whether the project scope should be expanded to include other differences between Statement 109 and IAS 12 identified by the staff. (Estimated 60-minute discussion.)

  2. Conceptual Framework. The Board will discuss a draft of an initial document planned to communicate to constituents the purposes of (a) the FASB Conceptual Framework and (b) this project to update and complete the framework and converge it with the IASB’s Framework. (Estimated 30-minute discussion.)

  3. FASB Staff Position: useful life and amortization of intangibles. The Board will discuss how the factors in paragraph 11 of FASB Statement No. 142, Goodwill and Other Intangible Assets, should be evaluated in determining the useful life and amortization of intangible assets. (Estimated 45-minute discussion.)

  4. Beneficial interests. The Board will discuss issues regarding whether concentrations of risks (including prepayment and credit risk) are embedded derivatives that should be evaluated for bifurcation under FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities. The Board will discuss whether interest-only and principal-only strips should continue to be exempted from the provisions of Statement 133 and whether they are derivatives or contain embedded derivatives that should be evaluated for bifurcation purposes. The Board also will discuss whether EITF Issue 99-20, "Recognition of Interest Income and Impairment on Purchased and Retained Beneficial Interests in Securitized Financial Assets," should be subsumed in an amended standard or maintained as a consensus. (Estimated 45-minute discussion.)

  5. Qualifying special-purpose entities with isolation of transferred assets. The Board will continue its discussion of the accounting for transfers of financial assets under FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. The Board is expected to focus on whether certain or all transfers involving portions of financial assets should require the use of a qualifying special-purpose entity (QSPE) and whether more specific implementation guidance should be provided on the requirements for achieving isolation of financial assets. In particular the Board will be asked to approve the proposed approach that would define circumstances for which isolation could be achieved for portions of assets without requiring a QSPE. (Estimated 60-minute discussion.)

  6. FASB Staff Position (FSP): suspended well costs. The Board will consider whether to direct the staff to post to the website a proposed FSP for public comment that would amend the guidance for suspended well costs in FASB Statement No. 19, Financial Accounting and Reporting by Oil and Gas Producing Companies. (Estimated 30-minute discussion.)

  7. 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.


Wednesday, January 19, 2005, immediately 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 January 26, 2005 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 or Interpretation.

January 5, 2005 Board Meeting

FASB Staff Position (FSP). The Board instructed the staff to proceed with the drafting of a Board-directed FSP on accounting for an investor’s proportionate share of an investee’s equity adjustments for other comprehensive income (OCI) upon a loss of significant influence. The Board decided that the investor’s proportionate share of an investee’s equity adjustments for OCI should be offset against the carrying value of the investment at the time significant influence is lost and the application of the equity method of accounting is discontinued.


The following is a list of open meetings tentatively scheduled through February. All meetings are held in Norwalk, Connecticut, unless otherwise noted. 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, January 26, 2005—FASB Board Meeting
Wednesday, January 26, 2005—FASB Education Session
Friday, January 28, 2005—Liaison Meeting with the American Bar Association
Wednesday, February 2, 2005—FASB Board Meeting
Wednesday, February 2, 2005—FASB Education Session
Wednesday, February 9, 2005—FASB Board Meeting
Wednesday, February 9, 2005—FASB Education Session
Wednesday, February 16, 2005—FASB Board Meeting
Wednesday, February 16, 2005—FASB Education Session
Wednesday, February 23, 2005—FASB Board Meeting
Wednesday, February 23, 2005—FASB Education Session