FASB Summary of March 12, 2003 Board Meeting Discussion

FASB: Summary of March 12, 2003 Board Meeting Discussion

Derivatives Implementation Group

Summary of March 12, 2003 Board Meeting Discussion on the Proposed Amendment to Statement 133

Amendment of Statement 133. The Board evaluated the effective date and transition provisions currently provided in the draft of the final Statement to amend Statement 133, and considered whether to delay the effective date of the final Statement given the expected timing of the publication of the document. The Board decided to accept the Staff’s proposal to delay the effective date of the final Statement. As proposed, the Board voted to delay the effective date of the final Statement as follows:

The Statement would be effective for contracts entered into or modified after June 30, 2003, or hedging relationships designated after June 30, 2003, and would be applied prospectively given that it is transaction/hedging-relationship-based.

Statement 133 Implementation Issues that have been cleared by the Board as part of the DIG process and that are effective for fiscal quarters that began prior to June 15, 2003, would continue to be effective based on their respective effective dates.

Paragraphs relating to forward purchases or sales of when-issued or other securities that do not yet exist would be applicable to both existing transactions as well as new transactions entered into after June 30, 2003.