FASB Seeks Clarity on Definition of A Public Entity
What is a public entity? Or, more specifically, is a conduit bond obligator with publicly traded conduit debt securities considered a public entity?
| All Aboard the High-Velocity 2006 FRx Express! FRx Software has the engine fired up again to travel nationwide with timely training and expert guidance! Microsoft FRx and Microsoft Forecaster users, potential users and resellers don’t miss this FREE*, half-day event!
Once you’re on board, the FRx Software experts will help you gain tremendous insight into Microsoft FRx and Microsoft Forecaster. You’ll have the opportunity to hear customer perspectives and network with prospects plus pack in useful tips, and see the features and benefits of FRx Software’s financial analytic applications. Register now!
A conduit municipal bond is an offering by a governmental entity that is not for its own use but for the use of a private party (conduit bond obligator). The types of private entities that can be involved in conduit municipal bond transactions are limited to certain not-for-profit entities including hospitals, museums, and libraries, etc., as well as certain for-profit entities for whom the debt is issued in the form of an industrial revenue or development bond. In some instances, conduit municipal bonds are traded on a domestic or foreign stock exchange or on public or over-the-counter markets.
On June 15, 2006, the Financial Accounting Standards Board (FASB) issued a proposed staff position (FSP) defining an obligator or debtor of a conduit municipal bond traded on a public exchange or market as a public entity. The proposed FSP would amend APB Opinion No. 28, Interim Financial Reporting; FASB Statements No. 69, Disclosures about Oil and Gas Producing Activities; No. 126, Exemption from Certain Required disclosures about Financial Instruments for Certain Nonpublic Entities; No. 131, Information and No. 141 Business Combinations.
The FASB invites individuals and organizations to send written comments on all matters in this proposed FSP. The deadline for submitting comments regarding this proposal is July 31, 2006.