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 Statement, Interpretation, FSP, or Statement 133 Implementation Issue.
The following are links to the minutes for each meeting:
Background Information
SOP 90-7 was issued in 1990 to provide guidance on financial reporting for entities that file petitions with the Bankruptcy Court and expect to reorganize as a going concern under Chapter 11 of Title 11 of the United States Code.
Under SOP 90-7, entities meeting certain criteria are required to adopt fresh-start reporting. Paragraph 38 of SOP 90-7 requires, in part, that entities adopting fresh-start reporting apply the following principles:
- The reorganization value of the entity should be allocated to the entity’s assets in conformity with the procedures specified by FASB Statement No. 141, Business Combinations.
- Changes in accounting principles that will be required in the financial statements of the emerging entity within the 12 months following the adoption of fresh-start reporting should be adopted at the time fresh-start reporting is adopted.
One of the basic requirements of fresh-start reporting is that an emerging entity early adopt changes in accounting principles that will be required in its financial statements within 12 months following the adoption of fresh-start reporting (emergence). In practice, the guidance has generally been interpreted to mean any new accounting standards that the emerging entity is required to adopt within 12 months of the emergence date.
In recent years, new accounting standards have moved from encouraging early adoption to prohibiting early adoption. This shift in practice presents a possible conflict in the hierarchy of generally accepted accounting principles (GAAP)—that is, whether an emerging entity applying fresh-start reporting should follow the provisions of SOP 90-7 (Level B GAAP) to early adopt new accounting standards that will be effective within 12 months from the date of emergence or whether the entity should follow the effective date guidance of a new accounting standard (often times Level A GAAP) that prohibits early adoption.
On February 13, 2008, the Board decided to add a project to its technical agenda to address this concern.
On February 27, 2008, the proposed FSP was released for public comment with a comment period ending March 28, 2008.
On April 16, 2008, the Board directed the staff to proceed to a draft of a final FSP for vote by written ballot.
