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...

SEC, Big Four Chinese affiliates make progress in talks over audit documentsMichael Rapoport of the Wall Street Journal reported that the US Securities and Exchange Commission (SEC) and the Chinese affiliates of the Big Four...
Koskinen warns filing season could be most complicated yetImplementation of the Foreign Account Tax Compliance Act and the Affordable Care Act, combined with a tight budget and the possibility of Congress passing a late...
Curious as to what the fastest-growing accounting and finance jobs might be for the next several years? According to the new 2015 Salary Guide from staffing firm Accounting Principles, some of those jobs include bookkeeping...

Already a member? log in here.

Upcoming CPE Webinars

Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.
Nov 12This webcast presents basic principles of revenue recognition, including new ASU 2014-09 for the contract method. Also, CPAs in industries who want a refresher on revenue accounting standards will benefit.
Nov 18In this session Excel expert David Ringstrom, CPA tackles what to do when bad things happen to good spreadsheets.