Project Update
Technical Corrections to FASB Statements and Other U.S. GAAP Literature
Last Updated: August 21, 2009 (Updated sections are indicated with an asterisk *)
The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.
Project Objective
Due Process Documents
*Decisions Reached at the Last Meeting
*Summary of Decisions Reached to Date
*Next Steps
*Board/Other Public Meeting Dates
Background Information
*Contact Information
Project Objective
The objective of this project is to improve the relevance, comparability, and transparency of the financial information that a reporting entity provides in its financial statements by addressing certain inconsistencies in U.S. generally accepted accounting principles (GAAP) literature, eliminating certain outdated guidance, and making technical corrections to an authoritative pronouncement if considered nonsubstantive in nature.
Due Process Documents
On March 16, 2009, the Board issued for exposure a proposed Statement , Rescission of FASB Technical Bulletin No. 01-1, Nullification of EITF Topics No. D-33 and No. D-67, Amendments, and Technical Corrections. Constituents are encouraged to submit written comments. The comment period ended on May 15, 2009.
*Decisions Reached at the Last Meeting (August 19, 2009)
The Board discussed the comments received on the Exposure Draft and instructed the staff to proceed to the drafting of a final Accounting Standards Update (Update) for vote by written ballot.The final Update will reflect the proposed amendments in the Exposure Draft, with a few modifications. The significant modifications include the following:
- FASB Technical Bulletin No. 01-01, Effective Date for Certain Financial Institutions of Certain Provisions of Statement 140 Related to the Isolation of Transferred Financial Assets, will not be rescinded in its entirety. Rather, the definition of the phrase equitable right of redemption in footnote 1 will survive as a definition in the Master Glossary of the FASB Accounting Standards CodificationTM.
- The term only will be added before the term underlying in the first sentence of paragraph 13 (paragraph 815-15-25-26 of the Accounting Standards Codification) of FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities (now included in Topic 815 of the Accounting Standards Codification). Special effective date and transition provisions will be specified.
- A clarification to Step 3 of Statement 133 Implementation Issue No. B16, “Calls and Puts in Debt Instruments,” (now included in Subtopic 815-15) has been added.
*Summary of Decisions Reached to Date
See Decisions Reached at Last Meeting..
*Next Steps
The Board has directed the staff to proceed to the drafting of an Update for vote by written ballot.Board/Other Public Meeting Dates
The Board meeting minutes 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 become final only after a formal written ballot to issue a final standard.
Below is a list of the FASB Board/Public meetings. Minutes for meetings generally are posted within two weeks following the meeting.
| *August 19, 2009 | Board Meeting—Discussion of public responses to Exposure Draft |
| January 21, 2009 | Board Meeting—Discussion of Proposed Technical Corrections Statement |
| May 21, 2008 | Agenda Decision |
Background Information
On May 21, 2008, Board members discussed a request to add a project to the agenda to resolve certain technical issues that arose after the issuance of FASB Statements No. 141 (revised 2007), Business Combinations, and No. 160, Noncontrolling Interests in Consolidated Financial Statements. Following that discussion, the FASB Chairman decided to add a Technical Corrections project to the agenda.
The Chairman, recognizing the need to periodically review existing U.S. GAAP literature and make necessary changes, decided to expand the scope of the project to include technical corrections other than those that resulted from the issuance of Statements 141(R) and 160. The project team solicited feedback from other FASB staff members and certain constituents about other authoritative U.S. GAAP literature that needs to be updated or corrected. This is similar to FASB Statement No. 145, Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections, which amended existing authoritative pronouncements to make various technical corrections, clarify meanings, or describe their applicability under changed conditions. The current project was commissioned to address certain inconsistencies in the literature, to eliminate certain outdated guidance, and to make technical corrections to an authoritative pronouncement if considered nonsubstantive in nature.
*Contact Information
Denise Moritz
Project Manager
demoritz@fasb.org
Bob Wilkins
Senior Project Manager
rcwilkins@fasb.org