Action Alert No. 07-02
January 11, 2007
NOTICE OF MEETINGS
OPEN BOARD MEETING
(Board meetings are available by audio webcast and telephone.)
Wednesday, January 17, 2007, 9:00 a.m.
- Agenda requestdelay of Interpretation 48 effective date (estimated 30-minute discussion). The Board will discuss requests received to delay the effective date of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes.
- Computational guidance for computing diluted earnings per share under the two-class method (estimated 15-minute discussion). The Board will discuss whether to issue a proposed FSP that would provide computational guidance for diluted earnings per share when applying the two-class method pursuant to FASB Statement No. 128, Earnings per Share.
- 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, January 17, 2007, 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 24, 2007 Board meeting and other future Board meetings. 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, Interpretation, or FSP.
January 3, 2007 Board Meeting
Financial instruments: liabilities and equity. The Board discussed a suggestion made by the Emerging Issues Task Force that the FASB undertake a project to make targeted, short-term improvements to existing standards of accounting for financial instruments with characteristics of both a liability and equity. After considering various alternatives, the Board decided to focus its resources on the existing modified joint project on liabilities and equity and not to add a short-term improvements project to its agenda.
Fair value option. The Board discussed the interaction of the disclosures required by the final Statement and the disclosures required by FASB Statements No. 107, Disclosures about Fair Value of Financial Instruments, and No. 157, Fair Value Measurements. The Board decided:
- As of each date for which a statement of financial position is presented, an entity should disclose information to enable users to relate each line in the statement of financial position that includes an item or items for which the fair value option has been elected to (a) major categories of assets and liabilities reported pursuant to the fair value disclosure requirements in Statement 157 and (b) the carrying amounts reported pursuant to the disclosure requirements in Statement 107.
- For each line in the statement of financial position that includes an item or items for which the fair value option has been elected, an entity should disclose the carrying amount of items included in each line that are not eligible for the fair value option, if any. That disclosure should be provided as of each date for which a statement of financial position is presented.
For each period for which an income statement is presented, an entity should disclose the following about items for which the fair value option has been elected: by line in the statement of financial position, the amounts of gains and losses from fair value changes included in earnings during the period and which line in the income statement those gains and losses are reported. (The Board decided that this disclosure requirement does not preclude an entity from also disclosing the amounts of gains and losses for other items measured at fair value, such as items required to be measured at fair value.)
FASB DOCUMENTS AVAILABLE
The following documents were posted to the FASB website on January 8, 2007:
Final Statement 133 Implementation Issue No. G26, "Cash Flow Hedges: Hedging Interest Cash Flows on Variable-Rate Assets and Liabilities That Are Not Based on a Benchmark Interest Rate"
Revised Statement 133 Implementation Issue No. G19, "Cash Flow Hedges: Hedging Interest Rate Risk for the Forecasted Issuances of Fixed-Rate Debt Arising from a Rollover Strategy."
FUTURE OPEN MEETINGS
The following is a list of open meetings tentatively scheduled through February. 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 24, 2007FASB Board Meeting
Wednesday, January 24, 2007FASB Education Session
Wednesday, January 31, 2007FASB Board Meeting
Wednesday, January 31, 2007FASB Education Session
Thursday, February 1, 2007Conceptual Framework Measurement Roundtable
Monday, February 5, 2007Liaison Meeting with National Investors Relations Institute
Wednesday, February 7, 2007FASB Board Meeting
Wednesday, February 7, 2007FASB Education Session
Tuesday, February 13, 2007FASB Board Meeting
Tuesday, February 13, 2007FASB Education Session
Thursday, February 15, 2007Joint Working Group Meeting on Lease Accounting, London
Wednesday, February 21, 2007FASB Board Meeting
Wednesday, February 21, 2007FASB Education Session
Wednesday, February 28, 2007FASB Board Meeting
Wednesday, February 28, 2007FASB Education Session