FASB Summary of March 14, 2001 Board Meeting Discussion

FASB: Summary of March 14, 2001 Board Meeting Discussion

Derivatives Implementation Group

Summary of March 14, 2001 Board Meeting Discussion on Statement 133 Implementation Issues

Financial instruments: derivatives implementation. At its March 14, 2001 meeting, the Board decided not to object to the staff's issuing guidance in a question-and-answer format (Q&A) for the following seven Implementation Issues regarding FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities:

Issue A16

Synthetic Guaranteed Investment Contracts

Issue B25

Deferred Variable Annuity Contracts with Payment Alternatives at the End of the Accumulation Period

Issue B26

Dual-Trigger Property and Casualty Insurance Contracts

Issue B27

Dual-Trigger Financial Guarantee Contracts

Issue B28

Foreign Currency Elements of Insurance Contracts

Issue B29

Equity-Indexed Annuity Contracts with Embedded Derivatives

Issue B30

Application of Statement 97 and Statement 133 To Equity-Indexed Annuity Contracts

However, with respect to Question 4 in Issue B25, the Board directed to the staff to remove the portion of the guidance relating to accounting for a period-certain plus life-contingent variable annuity, which will be revised and posted to the website for further public comment.

The tentative guidance in the above seven Implementation Issues was based on the results of discussion by the Derivatives Implementation Group (DIG) and had been posted on the FASB website since December 6, 2000.