Action Alert No. 07-04
January 25, 2007
NOTICE OF MEETINGS
OPEN BOARD MEETING
meetings are available by audio webcast and telephone.)
Tuesday, January 30, 2007, 1:00 p.m.
statement presentation (estimated 45-minute discussion).
The Board will discuss principles for disaggregated information in the
statement of comprehensive income.
benefit obligations, including pensions (estimated 15-minute
discussion). The Board will discuss comments received on proposed
FSP FAS 158-a, “Conforming Amendments to the Illustrations in FASB
Statements No. 87, No. 88, and No. 106 and to the Related Staff
Implementation Guides,” and decide whether to issue that proposed FSP as
- Agenda decision: allowance for losses (estimated 60-minute
discussion). The Board will discuss whether to add to its agenda a
project on allowance for credit losses related to financing receivables,
which includes loans and finance leases pursuant to FASB Statement No.
13, Accounting for Leases.
- Agenda decision: implementation of AICPA SOP 05-1
(estimated 30-minute discussion). The Board will discuss issues
raised by constituents at the January 8, 2007 roundtable discussion on
the implementation of AICPA SOP 05-1, Accounting by Insurance
Enterprises for Deferred Acquisition Costs in Connection With
Modifications or Exchanges of Insurance Contracts, and decide
whether to add a project on this topic to its agenda.
Wednesday, January 31, 2007, 9:00 a.m.
taxes (estimated 30-minute discussion). The Board will
discuss two issues. The Board will first discuss proposed clarifications
of a previous decision on the accounting for temporary differences
arising from asset acquisitions other than a business combination. The
Board will then discuss whether to eliminate the exception to deferred
tax recognition for goodwill that is not tax deductible.
combinations (estimated 30-minute discussion). The Board
will discuss whether to affirm or modify the changes to the accounting
for deferred income taxes in a business combination that were proposed
in the June 2005 FASB Exposure Draft, Business Combinations.
133 Implementation Issue—clarification of the application of the
shortcut method (estimated 45-minute discussion). The
Board will decide whether to issue a proposed Statement 133
Implementation Issue on the clarification of the application of the
shortcut method. The proposed Implementation Issue will address several
practice issues that have emerged related to the interpretation of
certain provisions of paragraph 68 of FASB Statement No. 133,
Accounting for Derivative Instruments and Hedging Activities.
Those issues primarily relate to the following circumstances:
- The hedged item has a fair value that is not equal to its par
value at the inception of the hedging relationship.
- The application of the shortcut method at the trade date when the
hedged item is accounted for at the settlement date.
- The hedged item is subject to principal pay-downs prior to
- The interpretation and application of paragraph 68(e).
- 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 31, 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 a future Board
meeting. Those topics will be posted to the FASB calendar four
days prior to the education session.
OPEN ROUNDTABLE DISCUSSION ON THE FASB/IASB JOINT CONCEPTUAL
Thursday, February 1, 2007, 9:00 a.m. – 12:00 p.m. and 1:30 p.m. –
The FASB and IASB will hold roundtable discussions on measurement in
conjunction with their joint conceptual framework project.
(Additional roundtables were held in Hong Kong, PRC on January 16 and 17
and will be held in London, UK on January 29, 2007.)
The objective of these roundtables is threefold:
- To hear the views of representative IASB and FASB constituents on
measurement early in the measurement phase of the conceptual framework
project. The discussion around this objective will be unstructured. Any
views on measurement that constituents wish to express are welcome.
- To discuss whether the list of measurement issues identified in the
plan for the measurement phase of the conceptual framework project is
appropriate and substantially complete.
- To discuss whether the initial inventory of potential measurement
bases prepared by the project staff and the terminology associated with
that inventory is substantially complete and understandable.
Observers—The roundtables will be open to observation by the press and
public and will be audio taped for later listening on the IASB and FASB
websites. As space for observers may be limited, those who would like to
observe a roundtable session are asked to register by clicking on this observer link.
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
January 17, 2007 Board Meeting
Agenda request—delay of Interpretation 48 effective date. The
Board added a project to its agenda to provide implementation guidance for
the phrase “the tax matter is ultimately settled through negotiation or
litigation” in paragraph 10(b) of FASB Interpretation No. 48,
Accounting for Uncertainty in Income Taxes. The Board asked the
staff to develop that implementation guidance for consideration at a
future meeting. Also, the Board decided not to delay the effective date of
guidance for computing diluted earnings per share under the two-class
method. The Board decided to issue a proposed FSP to provide
computational guidance for diluted earnings per share (EPS) when applying
the two-class method pursuant to FASB Statement No. 128, Earnings per
Share. The proposed FSP would provide constituents with guidance on
the computation of diluted EPS under the two-class method in situations in
which an entity’s capital structure includes common stock, participating
securities, and potential common stock.
The Board also decided that:
- The guidance in the final FSP should be applied as follows:
- The effective date should be the first reporting period beginning
after the date the FSP is posted to the FASB website.
- All prior-period EPS data presented should be adjusted
retrospectively (including interim financial statements, summaries of
earnings, and selected financial data) to conform to the provisions of
- The proposed FSP should be exposed for a 60-day comment period.
The Board directed the staff to proceed to draft a proposed FSP for
vote by written ballot.
FUTURE OPEN MEETINGS
The following is a list of open meetings tentatively scheduled through
March. 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.
Monday, February 5, 2007—Liaison Meeting with National Investors
Wednesday, February 7, 2007—FASB Board
Wednesday, February 7, 2007—FASB Education Session
February 13, 2007—FASB Board Meeting
Tuesday, February 13, 2007—FASB
Thursday, February 15, 2007—Joint Working Group
Meeting on Lease Accounting, London
Wednesday, February 21, 2007—FASB
Wednesday, February 21, 2007—FASB Education
Wednesday, February 28, 2007—FASB Board Meeting
February 28, 2007—FASB Education Session
Wednesday, March 7,
2007—FASB Board Meeting
Wednesday, March 7, 2007—FASB Education
Wednesday, March 14, 2007—FASB Board Meeting
March 14, 2007—FASB Education Session
Thursday, March 15, 2007—Emerging
Issues Task Force Meeting
Tuesday, March 20, 2007—Financial Accounting
Standards Advisory Council Meeting
Wednesday, March 21, 2007—FASB Board
Wednesday, March 21, 2007—FASB Education Session
March 27, 2007—Not-for-Profit Roundtable Meeting
Wednesday, March 28,
2007—FASB Board Meeting
Wednesday, March 28, 2007—FASB Education