FASB Makes 3 EITF Draft Abstracts for Comment

The Financial Accounting Standards Board (FASB) has made three Emerging Issues Task Force (EITF) Draft Abstracts available for comment through May 4, 2006. The Task Force invites individuals and organizations to provide written comments on all matters within the draft abstracts to director@FASB.org. Comments will be considered at the June 14-15, 2006, EITF meeting.


Advertisement


Low Cost Accounting Software Support

Provider of low cost support, consulting, training and custom report writing for MAS 90, MAS 200 and MAS 500 accounting software systems. Call us toll free at 1-866-762-3990 to learn how we can help. http://www.saveonsupport.com


EITF Issue No. 05-1

The draft abstract of EITF Issue No. 05-1 Accounting for the conversion of an Instrument That Became Convertible upon the Issuer’s Exercise of a Call Option addresses how the conversion of an instrument that became convertible upon the issuer’s exercise of a call option should be accounted for.

The Task Force specifically requests constituents comment on:

  1. Whether the scope of the proposed EITF consensus in Issue 05-1 is appropriate
  2. Whether accounting for settlements in the scope of Issue 05-1 should be determined based on an evaluation of the embedded conversion as of an instrument’s issuance date
  3. In evaluating an embedded conversion feature as of an instrument’s issuance date, whether the proposed definition of a substantive conversion feature that is reflected in paragraph 7 on the draft abstract for Issue 05-1 is appropriate
  4. Whether the methods that may be helpful in assessing whether a conversion feature is substantive that are described in paragraph 9 of the draft abstract for Issue 05-1 are clear and complete.

EITF Issue No. 06-2

The draft abstract for EITF Issue No.06-2 Accounting for Sabbatical Leave and Other Similar Benefits Pursuant to FASB Statement No. 43, “Accounting for Compensated Absences” addresses whether an employee’s right to a compensated absence under a sabbatical leave or other similar benefit arrangement (a) that requires the completion of a minimum service period and (b) in which the benefit does not increase with additional years accumulates pursuant to paragraph 6(b) of Statement 43.

The Task Force specifically requests constituents to comment on whether the proposed effective date is appropriate.

EITF Issue 06-3

The draft abstract of EITF Issue No. 06-3 How Taxes Collected from Customers and Remitted to Governmental Authorities Should Be Presented in the Income Statement (That Is Gross versus Net Presentation) addresses the following issues:

  1. Whether the scope of this Issue should include (a) all nondiscretionary amounts assessed by governmental authorities, (b) all nondiscretionary amounts assessed by governmental authorities in connection with a transaction with a customer, or (c) only sales, use, and value added taxes.

  2. How taxes assessed by a governmental authority within the scope of this Issue (Issue 1 above) should be presented in the income statement (that is, gross versus net presentation).

The Task Force specifically requests constituents comment on:

  1. Whether the scope of the Issue as proposed is appropriate
  2. Whether the presentation of taxes is an accounting policy decision that should be disclosed in the financial statements and if the taxes are reported gross, whether that amount should be disclosed in the aggregate
  3. Whether it is appropriate that the date of adoption an entity is not required to re-evaluate its policy of the presentation of taxes in the financial statements.

You may like these other stories...

Cybersecurity is no longer the domain of an organization's IT staff. It's moved to the boardroom, and in a big way. Accountants and financial managers may have been thinking it's just the province of the tech...
Boehner addresses GOP priorities ahead of midterm electionsHouse Speaker John Boehner (R-OH) on Thursday delivered what amounted to closing arguments ahead of the November elections, laying out a list of Republican...
Former DOJ Tax Division head Kathryn Keneally joining DLA Piper in New YorkGlobal law firm DLA Piper announced on Thursday that Kathryn Keneally, the former head of the US Justice Department Tax Division, is joining the firm...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.