Amendments to FAS 107 Disclosures
The FASB had proposed to amend the FAS 107 disclosures on financial instruments to include a tabular reconciliation and a pro forma income statement. Due to the outpouring of dissent from the general public, the FASB has decided to remove this FSP from their agenda. They are going to replace it with a new FSP that would require the annual financial instruments disclosures to be reported on a quarterly basis.
The new FSP would be effective for reporting periods ending after March 15, 2009.
We really dodged a bullet with this one. The previous FSP would have been a nightmare to implement for anyone with debt securities and was to be effective for the 1st quarter of 2009. This proves that the FASB does read the comment letters that are sent in and does take them into consideration. So be sure to send in those comment letters.
Linda is a CPA living in Southwestern Ohio, working as a research accountant for an investor-owned publicly traded utility company. She specializes in implementing new FASB and SEC requirements and FAS 133 derivative issues. In her role at the utility she has encountered many issues and written many memos, so send in your implementation and derivative issues and Linda will help figure out an answer.