SUMMARY OF BOARD DECISIONS

Summary of Board decisions 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 standard.

April 29, 2009 Board Meeting

Reconsideration of the scope of Statement 160. The Board decided to clarify the scope of the partial sale and deconsolidation provisions of FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements, which amends AICPA Accounting Research Bulletin No. 51, Consolidated Financial Statements.

The Board decided to modify the scope of Statement 160 such that the partial sale and deconsolidation provisions apply only to subsidiaries that are businesses or nonprofit activities. The Board also decided to address the matters raised in EITF Issue No. 08-10, “Selected Statement 160 Implementation Questions,” for which the EITF had not yet reached a final consensus. The Board decided:

  1. To modify EITF Issue No. 01-2, “Interpretations of APB Opinion No. 29,” to clarify that the exchange of a group of assets that constitute a business in return for an equity interest should be accounted for in accordance with the deconsolidation provisions of Statement 160.

  2. That the partial sale and deconsolidation provisions of Statement 160 should not apply to in-substance real estate transactions.

  3. That Statement 160 will apply when a subsidiary is transferred to an equity method investee or joint venture.

Before exposing the scope modifications to the public, the Board asked the staff to obtain additional feedback from financial statement users on these issues.