Revised 11/26/07—See below
Action Alert No. 07-47
November 21, 2007
NOTICE OF MEETINGS
OPEN BOARD MEETING
meetings are available by audio webcast and telephone.)
No Board meetings are planned for the week of November 26, 2007. The
next scheduled Board meeting is Wednesday, December 5, 2007, and will be
announced in next week's issue of Action Alert.
OPEN EDUCATION SESSION
Wednesday, November 28, 2007, 9:30 a.m. [Revised 11/26/07—The start time and the order of topics
have been revised.]
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 sessions.
OPEN MEETING OF THE EMERGING ISSUES TASK FORCE
(This meeting is
available by audio webcast and telephone.)
Thursday, November 29, 2007, 9:00 a.m. - 3:30 p.m.
The Task Force plans to discuss all of the following issues in
the order shown:
- Issue No. 07-4, "Application of the Two-Class Method under FASB
Statement No. 128, Earnings per Share, to Master Limited
- Issue No. 07-6, "Accounting for the Sale of Real Estate Subject to
the Requirements of FASB Statement No. 66, Accounting for Sales of
Real Estate, When the Agreement Includes a Buy-Sell Clause"
- Issue No. 07-5, "Determining Whether an Instrument (or Embedded
Feature) Is Indexed to an Entity's Own Stock"
- Issue No. 07-1, "Accounting for Collaborative Arrangements Related
to the Development and Commercialization of Intellectual Property."
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.
November 14, 2007 Board Meeting
statement presentation. The Board agreed to modify the information
to be disaggregated in the reconciliation schedule (that is, a
reconciliation of the statement of cash flows to the statement of
comprehensive income) so as to reach a converged view with the IASB for
purposes of the preliminary views document. The Board agreed to combine
the presentation of contractual accruals and other changes that are not
remeasurements. Under the converged view an entity would, at a minimum,
disaggregate the difference between cash flows and amounts reported in
comprehensive income into four components:
- Cash flows not affecting income
- Accruals and systematic allocations
- Recurring valuation changes
- Remeasurements other than recurring valuation changes.
The Board confirmed that the reconciliation schedule should include
disclosure of unusual or infrequent events or transactions.
The Board discussed the totals and subtotals that should be required in
the financial statements and reached the following decisions:
- A total should be presented for each section (business, discontinued
operations, financing, equity, income taxes, and other comprehensive
income) and category within those sections (operating assets and
liabilities, investing, financing assets, and financing liabilities) in
each of the financial statements. Other totals and subtotals may be
presented when such presentation is relevant to understanding an
entity's financial position and changes in that financial position.
- Totals for subcategories should not be required, but the items in
those subcategories should be clearly distinguished. For example,
short-term items should be clearly distinguished from long-term items in
a classified statement of financial position.
The Board also decided that the categories and sections should be
presented in the same order in each of the financial statements; however,
that order would not be prescribed.
Agenda requests: Effective date of Statement 157 and certain
Statement 157 implementation issues. The Board discussed three issues
related to the implementation of Statement 157, Fair Value
Measurements, and decided the following:
- The Board decided not to add a project to its agenda to issue an FSP
that would provide guidance related to determining the unit of valuation
and the exit market concepts in FASB Statement No. 157.
- The Board decided to issue an FSP to provide guidance that would
clarify the principles in Statement 157 on the measurement of
- The Board affirmed that the disclosures in paragraph 32 of Statement
157 are not required for plan assets of a pension or other
postretirement benefit plan in the financial statements of the plan
sponsor. However, the Board decided to add a short-term project to its
agenda to expand the disclosures about plan assets under FASB Statement
No. 132 (revised 2003), Employers' Disclosures about Pensions and
Other Postretirement Benefits.
The Board also decided to add a project to its agenda to issue an FSP
that would defer the effective date of Statement 157 for one year for all
nonfinancial assets and nonfinancial liabilities, except for those items
that are recognized or disclosed at fair value in the financial statements
on a recurring basis (at least annually). The Board directed the staff to
proceed to a draft for vote by written ballot with a 30-day comment
140 implementation—repurchase financing agreements. The Board
discussed significant issues raised by respondents to the proposed FSP FAS
140-d, Accounting for Transfers of Financial Assets and Repurchase
Financing Transactions. The Board agreed to limit the scope to initial
transfers and repurchase financing transactions that occur
contemporaneously or in contemplation of one another and to retain the
rebuttable presumption approach when evaluating the linkage criteria. The
Board decided to solicit input from an external resource group about the
feasibility and operationality of these revisions before finalizing the
FSP. The Board decided to:
- Modify the implied commitment criterion to clarify the principle.
- Modify the recourse criterion to clarify the principle.
- Change the marketability criterion to refer to assets that are
"readily obtainable" in the marketplace instead of financial assets with
quoted prices in active markets.
- Expand the marketability criterion to consider other transactions
that were contemplated with the initial transfer and repurchase
- Delay the effective date by one year to fiscal years beginning after
November 15, 2008.
- Reaffirm that the guidance should be applied using a limited form of
- Provide an exception that derecognition of a held-to-maturity
security that results from the adoption of the FSP should not be
considered a tainting event under FASB Statement No. 115, Accounting
for Certain Investments in Debt and Equity Securities.
FASB DOCUMENT AVAILABLE
SOP 07-1-a, "Effective Date of AICPA Statement of Position 07-1,"
was issued on November 16, 2007, and is available on the FASB website.
Comments are requested by December 17, 2007.
FUTURE OPEN MEETINGS
The following is a list of open meetings tentatively scheduled through
January. 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, December 5, 2007—FASB Board Meeting
5, 2007—FASB Education Session
Thursday, December 6, 2007—Financial
Accounting Standards Advisory Council Meeting
Friday, December 7,
2007—Small Business Advisory Committee Meeting
Wednesday, December 12,
2007—FASB Board Meeting
Wednesday, December 12, 2007—FASB Education
Wednesday, December 19, 2007—FASB Board Meeting
December 19, 2007—FASB Education Session
Friday, January 4, 2008—FASB
Board Meeting (tentative)
Friday, January 4, 2008—FASB Education
Wednesday, January 9, 2008—FASB Board Meeting
January 9, 2008—FASB Education Session
Wednesday, January 16, 2008—FASB
Wednesday, January 16, 2008—FASB Education
Wednesday, January 23, 2008—FASB Board Meeting
January 23, 2008—FASB Education Session
Friday, January 25,
2008—Liaison Meeting with National
Association of Real
Estate Investment Trusts
Wednesday, January 30, 2008—FASB Board
Wednesday, January 30, 2008—FASB Education Session