Revised 8/14/08—See below
Action Alert No. 08-33
August 14, 2008
NOTICE OF MEETINGS
OPEN BOARD MEETING
meetings are available by audio webcast and telephone.)
No Board meetings are planned for the week of August 18, 2008. The
next scheduled Board meeting is Wednesday, August 27, 2008, and will be
announced in next week's issue of Action Alert.
OPEN EDUCATION SESSION
No education sessions are planned for the week of August 18, 2008.
The next scheduled education session is Wednesday, August 27, 2008, and
will be announced in next week's issue of Action Alert.
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.
August 6, 2008 Board Meeting
about credit derivatives. The Board redeliberated issues related
to the scope, disclosures, and effective date of proposed FSP FAS 133-b
and FIN 45-c, Disclosures about Credit Derivatives and Certain
Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation
The Board decided not to expand the FSP's scope to include all
financial instruments or credit-risk-related guarantees that are outside
the scope of FASB Statement No. 133, Accounting for Derivative
Instruments and Hedging Activities, or FASB Interpretation No. 45,
Guarantor's Accounting and Disclosure Requirement for Guarantees,
Including Indirect Guarantees of Indebtedness of Others.
The Board clarified that a derivative with multiple underlyings is
within the FSP's scope if one (or more) of its underlyings exposes the
seller/writer to significant potential loss from credit-risk-related
events specified in the contract. The Board also clarified that the FSP's
scope includes a credit derivative embedded in a hybrid instrument.
With respect to an entity's disclosure about a credit derivative's or
guarantee's current status of payment/performance risk, the Board decided
not to express a preference (for example, a higher level in a hierarchy)
for the use of external credit ratings when compared to internal groupings
in the way the entity manages its risk. The Board decided to include in
the FSP some guidance on how an entity should group similar credit
derivatives in complying with its disclosure requirements.
The Board decided to retain the effective date in the proposed FSP.
Accordingly, the final FSP will be effective for the first reporting
period (annual or interim) ending after November 15, 2008.
The Board also decided to include a clarification about the effective
date of FASB Statement No. 161, Disclosures about Derivative
Instruments and Hedging Activities, in the final FSP. The
clarification would emphasize that the disclosures required by Statement
161 should be provided for the first reporting period (annual or interim)
that begins after November 15, 2008.
The Board directed the staff to proceed to a draft of a final FSP for
vote by written ballot.
FUTURE OPEN MEETINGS
The following is a list of open meetings tentatively scheduled through
September. 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, August 27, 2008—FASB Board Meeting
Wednesday, August 27,
2008—FASB Education Session
Wednesday, September 3, 2008—FASB Board
Wednesday, September 3, 2008—FASB Education Session
September 8, 2008—Liabilities and Equity Roundtable Meeting
September 10, 2008—FASB Board Meeting
Wednesday, September 10,
2008—Emerging Issues Task Force Meeting
Monday, September 15,
2008—Liaison Meeting with the AICPA Private Companies Practice Section,
Technical Issues Committee
Wednesday, September 17, 2008—FASB Education
Thursday, September 18, 2008—FASB Board Meeting
September 22, 2008—Financial Accounting Standards Advisory Council
Tuesday, September 23, 2008—Financial Accounting Standards
Advisory Council Meeting
Wednesday, September 24, 2008—FASB Board
Wednesday, September 24, 2008—Contingency Disclosures
Roundtable, p.m. (Revised 8/14/08—This Roundtable
will be rescheduled)