FASB Summary of November 23, 1999 Board Meeting Discussion
Derivatives Implementation Group
Summary of November 23, 1999 Board Meeting Discussion on Statement 133 Implementation Issues
Financial instruments: derivatives implementation: The Board decided not to object to the staff's issuing implementation guidance in a question-and-answer format (Q&A) for the following 14 implementation issues regarding FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities:
- Issue A5Penalties for Nonperformance That Constitute Net Settlement
- Issue A6Notional Amount of Commodity Contracts
- Issue A7Effect of Contractual Provisions on the Existence of a Market Mechanism That Facilitates Net Settlement
- Issue A8Asymmetrical Default Provisions
- Issue E5Complex Combinations of Options
- Issue F3Firm CommitmentsStatutory Remedies for Default Constituting a Disincentive for Nonperformance
- Issue F4Interaction of Statement 133 and Statement 114
- Issue F5Basing the Expectation of Highly Effective Offset on a Shorter Period Than the Life of the Derivative
- Issue G5Hedging the Variable Price Component
- Issue H6Accounting for Premium or Discount on a Forward Contract Used as the Hedging Instrument in a Net Investment Hedge
- Issue H7Frequency of Designation of Hedged Net Investment
- Issue J5Floating-Rate Currency Swaps
- Issue J6Fixed-Rate Currency Swaps
- Issue J7Transfer of Financial Assets Accounted for Like Available-for-Sale Securities into Trading
The tentative guidance in the above 14 issues was based on the results of discussion by the Derivative Implementation Group (DIG) and had been posted on the FASB web site for at least four months.