Action Alert No. 04-39
October 7, 2004

NOTICE OF MEETINGS

OPEN BOARD MEETING
(Board meetings are available by audio webcast and telephone.)

Wednesday, October 13, 2004, 9:00 a.m.

  1. Equity-based compensation. The Board will continue redeliberations of its Exposure Draft, Share-Based Payment, an amendment of FASB Statements No. 123 and 95. The Board plans to address issues related to fair value measurement, any follow-up issues from prior Board meetings, and effective date. (Estimated 2-hour discussion.)

  2. Interpretation of Statement 87/amendment of Statement 35. The Board will consider its future plans for this project. (Estimated 30-minute discussion.)

  3. EITF ratification. The Board will consider the ratification of the consensuses reached at the September 29–30, 2004 Emerging Issues Task Force meeting. (Estimated 30-minute discussion.)

  4. 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 SESSIONS

Tuesday, October 12, 2004, 9:00 a.m. and 2:30 p.m.
Wednesday, October 13, 2004, immediately following the Board meeting
Friday, October 15, 2004, 9:00 a.m.

The Board will hold educational, non-decision-making sessions to discuss topics that are anticipated to be discussed at the October 19 and 20, 2004 joint IASB/FASB Board meetings, and at other future FASB Board meetings. Those topics will be posted to the FASB calendar four days prior to the education session.

OPEN MEETING WITH THE FASB USER ADVISORY COUNCIL

Thursday, October 14, 2004, 9:00 a.m.
New York Marriott Marquis
1535 Broadway
New York, New York

The Board and the User Advisory Council will meet to discuss how analysts use financial information. That discussion may include issues concerning current technical projects on the FASB agenda.

OPEN FASB INSURANCE INDUSTRY FORUM

Friday, October 15, 2004, 10:00 a.m. – 12:00 p.m. and 1:00 p.m. – 4:00 p.m.

The Board will meet with representatives of several insurance industry representational organizations and others to discuss matters of mutual interest.

Beginning at 1:00 p.m., the Board will meet with each of the financial reporting committees of the American Insurance Association, the American Council of Life Insurers, and the American Academy of Actuaries to further discuss matters of mutual interest. The afternoon meetings are expected to last approximately one hour each.

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

September 29, 2004 Board Meeting

FASB technical plan. The Board discussed its technical plan for the six-month period from October 1, 2004, through March 31, 2005, and approved it for publication in the October issue of The FASB Report. That approved plan reflects the following changes to the technical plan timetable as of September 30, 2004:

  1. It no longer includes an estimate for the timing of public roundtable discussions that would likely be held related to the Board’s upcoming Exposure Drafts for business combinations purchase method procedures and for noncontrolling interests. The Board decided to defer announcement of those roundtable meetings until the dates of those meetings have been determined.

  2. The issuance date for the Exposure Drafts for the three Statement 140 projects (qualifying special-purpose entities and isolation of transferred assets, beneficial interests, and servicing rights) was moved to the second quarter of 2005. Final Statements for those three projects now are expected in the fourth quarter of 2005.

  3. It no longer includes an estimated date for issuance of an Exposure Draft and final Statement for the Interpretation of Statement 87/amendment of Statement 35 project. That issuance date will not be announced until after the Board considers a revised project timeline.

September 30, 2004 Board Meeting

FASB Staff Position (FSP). The Board directed the staff to post to the FASB website FSP EITF Issue 03-1-1, “Effective Date of Paragraphs 10–20 of EITF Issue No. 03-1, ‘The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments.’” That final FSP delays the effective date for the measurement and recognition guidance contained in paragraphs 10–20 of Issue 03-1. The delay of the effective date will be superseded concurrent with the final issuance of FSP EITF Issue 03-1-a, “Implementation Guidance for the Application of Paragraph 16 of EITF Issue No. 03-1, ‘The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments.’”

EITF ACTIONS

September 29–30, 2004 EITF Meeting

The Task Force discussed the following issues:

  1. Issue No. 03-9, “Determination of the Useful Life of Renewable Intangible Assets under FASB Statement No. 142, Goodwill and Other Intangible Assets." The Task Force decided to remove this Issue from the EITF agenda; however, the Board agreed to address this Issue by providing guidance on how the factors in subparagraph 11(d) of FASB Statement No. 142, Goodwill and Other Intangible Assets, should be evaluated in determining the useful life of an intangible asset. The Board will address this Issue at a future meeting.

  2. Issue No. 03-13, "Applying the Conditions in Paragraph 42 of FASB Statement No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, in Determining Whether to Report Discontinued Operations.” The Task Force requested that the FASB staff prepare a draft abstract that incorporates the tentative conclusions reached and post the draft to the FASB’s website for public comment. The Task Force will consider the comments received before reaching a final consensus.

  3. Issue No. 04-1, "Accounting for Preexisting Relationships between the Parties to a Business Combination." Consensuses were reached. The Board will consider the ratification of those consensuses at its October 13, 2004 meeting.

  4. Issue No. 04-5, "Investor's Accounting for an Investment in a Limited Partnership When the Investor Is the Sole General Partner and the Limited Partners Have Certain Rights." This Issue will be discussed further at a future meeting.

  5. Issue No. 04-6, "Accounting for Stripping Costs Incurred during Production in the Mining Industry." This Issue will be discussed further at a future meeting.

  6. Issue No. 04-7, "Determining Whether an Interest Is a Variable Interest in a Potential Variable Interest Entity." This Issue will be discussed further at a future meeting.

  7. Issue No. 04-8, "The Effect of Contingently Convertible Debt on Diluted Earnings per Share." A consensus was reached. The Board will consider the ratification of that consensus at its October 13, 2004 meeting.

  8. Issue No. 04-9, "Accounting for Suspended Well Costs." The Task Force requested that the Board consider an amendment to FASB Statement No. 19, Financial Accounting and Reporting by Oil and Gas Producing Companies, to address this Issue. The FASB staff will provide the recommendations of the EITF to the Board at a future Board meeting.

  9. Issue No. 04-10, "Determining Whether to Aggregate Operating Segments That Do Not Meet the Quantitative Thresholds." A consensus was reached. The Board will consider the ratification of that consensus at its October 13, 2004 meeting.

FUTURE OPEN MEETINGS

The following is a list of open meetings tentatively scheduled through November. All meetings are held in Norwalk, Connecticut, unless otherwise noted. 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.

Tuesday, October 19, 2004—FASB Board Meeting
Wednesday, October 20, 2004—Joint FASB/IASB Board Meeting
Thursday, October 21, 2004—FASB Education Session
Wednesday, October 27, 2004—FASB Board Meeting
Wednesday, October 27, 2004—FASB Education Session
Tuesday, November 2, 2004—Liaison Meeting with the Institute of Management Accountants
Wednesday, November 3, 2004—FASB Board Meeting
Wednesday, November 3, 2004—FASB Education Session
Wednesday, November 10, 2004—FASB Board Meeting
Wednesday, November 10, 2004—Education Session
Tuesday, November 16, 2004—FASB Education Session
Wednesday, November 17, 2004—FASB Board Meeting
Wednesday, November 17, 2004—Emerging Issues Task Force Meeting
Thursday, November 18, 2004—Emerging Issues Task Force Meeting
Wednesday, November 24, 2004—FASB Board Meeting
Wednesday, November 24, 2004—FASB Education Session
Tuesday, November 30, 2004—FASB Board Meeting
Tuesday, November 30, 2004—FASB Education Session


†FASB Meetings Available by Audio Webcast and Telephone

To monitor available live meetings free of charge by audio webcast, access the link http://www.trz.cc/fasb/live.html. To monitor by telephone, call 1-800-846-4717. You will be charged $.45 per minute, and VISA, MasterCard, American Express, or Discover Card is required. To listen to a recording of the most recent Board meeting via webcast free of charge, access the link http://www.trz.cc/fasb/archive.html. To listen to a recording by telephone, for a charge of $.45 per minute, call 1-800-462-0393. Questions can be directed to 1-800-846-4630.

To monitor the status of Board meeting discussions as the Board progresses, access the Board Meetings link at the top navigator bar and then click on Status of Board Meeting Discussions.

Handouts distributed to the audience at Board meetings are posted to our website one-half hour before the start of the meeting. A synopsis of each issue to be discussed at EITF meetings also is posted to this website.

Education sessions are not available by audio webcast or telephone, and no handouts are distributed to the audience.