Action Alert No. 02-28
July 17, 2002

NOTICE OF MEETING

OPEN MEETING OF THE FINANCIAL ACCOUNTING STANDARDS BOARD

Wednesday, July 24, 2002, 9:00 a.m.

The Board meeting will begin at 9:00 a.m. instead of 9:30 a.m.

  1. Financial performance reporting by business enterprises. The Board will continue its discussions of the status of a similar project that is being conducted jointly by the International Accounting Standards Board (IASB) and the UK’s Accounting Standards Board (ASB) and their tentative decisions to date. The meeting is educational and will include a briefing by a member of the IASB’s project staff.   No decisions are expected. (Estimated 60- to 90-minute  discussion.)    

     

  2. Business combinations: purchase method procedures. The Board will discuss specific applications of its earlier decisions on fair value measurement guidance for initial measurement of assets acquired and liabilities assumed in a purchase business combination. (Estimated 45-minute  discussion.)   

     

  3. 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.

     

     AS OF JULY 2002
ALL BOARD MEETINGS AVAILABLE BY TELEPHONE

To monitor Board meeting discussions by telephone, interested individuals can call 1-800-846-4717. You will be charged $.75 per minute and VISA, MasterCard, American Express, or Discover Card is required. Estimates for the duration of each Board topic are listed above. Questions about the telephone hookup can be directed to 203-847-0700, extension 389.

Any handouts distributed to the audience at each Board meeting are posted to our website (access the Action Alert link) one-half hour before the start of the meeting. If you do not have access to the Internet, you can receive the handouts by fax-on-demand one-half hour before the start of the meeting by calling 203-847-0700, menu item 14. Once you have pressed 14, press option 2, and then press 658 to receive the audience handout.

BOARD ACTIONS

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 hearings, and through other communication channels. Decisions become final only after a formal written ballot to issue a final Statement or Interpretation.

July 10, 2002 Board Meeting

Financial performance reporting by business enterprises. The Board discussed the status of a similar project that the IASB is conducting with the ASB. The meeting was educational, and no Board decisions were made. The educational discussion will continue at the July 24 Board meeting.

Financial instruments: liabilities and equity. The Board discussed whether to revise the definition of liabilities as proposed in the October 2000 FASB Exposure Draft, Proposed Amendment to FASB Concepts Statement No. 6 to Revise the Definition of Liabilities. The Board decided to revise the definition of liabilities in paragraph 35 of FASB Concepts Statement No. 6, Elements of Financial Statements, to include certain instruments embodying obligations that permit or require settlement by issuance of a reporting entity’s equity shares if an ownership relationship is not established. That revision is consistent with the revision proposed in the Exposure Draft.

FASB technical plan. The Board approved for publication in THE FASB REPORT its July 2002 plan for research and technical activities.

During its discussion of its research and technical plan, the Board identified the following seven priorities for the second half of calendar year 2002:

  1. Consolidation of certain special-purpose entities—The Board affirmed its goal of issuing a final Interpretation on consolidation of certain special-purpose entities by the end of 2002.

     

  2. Guarantor’s accounting for guarantees—The Board affirmed its goal of issuing a final Interpretation on guarantor’s accounting and disclosure requirements for guarantees, including indirect guarantees of indebtedness of others by the end of 2002.

     

  3. Revenue recognition—The Board agreed with the staff-recommended objective of completing (a) the database of existing revenue recognition guidance and practices (bottom-up phase) and (b) the working criteria for revenue recognition by the end of 2002.

     

  4. Liabilities and equity—The Board affirmed its year-end goal of completing redeliberations of the proposed change to the definition of liabilities and reaching a decision about whether to issue a limited-scope Statement implementing any change to certain financial instruments.

     

  5. Reporting financial performance—The Board will continue to deliberate the basic principles tentatively agreed to by the IASB in its project on reporting financial performance in preparation for the joint meeting between the FASB and the IASB on September 18, 2002.

     

  6. Business combinations—The Board affirmed its goal of issuing an Exposure Draft reflecting the decisions reached on its project on purchase method procedures by the end of 2002.

     

  7. Codification and simplification—The Board established a goal of completing a document describing what it means by "principle-based" standards for distribution to and discussion with constituents by the end of 2002. That document also would describe how the process of setting accounting standards and those involved in that process would need to change if the United States is to move toward issuing standards that are less rule based.

     

The Board directed the staff to begin researching a potential project focusing on convergence of certain accounting topics with the IASB. The Board noted that the IASB recently added a project to its main agenda that would seek convergence on topics that the IASB believes a high-quality solution is available from existing international and national standards.

The Board also decided to hold a roundtable meeting with interested constituents to discuss their views on the FASB proposed Interpretation, Consolidation of Certain Special-Purpose Entities. That meeting, the date for which has not yet been determined, will be held after the close of the comment period on August 30, 2002.

FUTURE OPEN MEETINGS

The following is a list of open meetings tentatively scheduled through September. Because schedules may change, please check the FASB calendar of meetings on this website before finalizing your plans. Revisions to this list since the last issue of Action Alert are highlighted in bold.

Wednesday, July 24, 2002—FASB Board Meeting

Wednesday, July 31, 2002—FASB Board Meeting

Friday, August 2, 2002—Liaison Meeting with the Financial Managers Society

Wednesday, August 7, 2002—FASB Board Meeting

Wednesday, August 14, 2002—FASB Board Meeting

Wednesday, August 21, 2002—No FASB Board Meeting

Wednesday, August 28, 2002—FASB Board Meeting

Thursday, August 29, 2002—Liaison Meeting with the New York Society of Security Analysts

Wednesday, September 4, 2002—FASB Board Meeting

Friday, September 6, 2002—Liaison Meeting with the Institute of Management Accountants

Wednesday, September 11, 2002—FASB Board Meeting

Wednesday, September 11, 2002—Emerging Issues Task Force Meeting

Thursday, September 12, 2002—Emerging Issues Task Force Meeting

Wednesday, September 18, 2002—FASB/IASB Joint Board Meeting

Thursday, September 19, 2002—Liaison Meeting with the American Council of Life Insurance

Tuesday, September 24, 2002—Financial Accounting Standards Advisory Council Meeting

Wednesday, September 25, 2002—FASB Board Meeting

Thursday, September 26, 2002—Liaison Meeting with the American Gas Association


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