NEWS RELEASE 04/06/06
FASB Emerging Issues Task Force Invites Public Comment On Three Draft Abstracts
Norwalk, CT, April 06, 2006—The Financial Accounting Standards Board (FASB) has ratified the tentative conclusions reached by the Emerging Issues Task Force (EITF) in three EITF draft abstracts. Each of these draft abstracts have been posted to the FASB's website and have a 30-day comment period
The draft abstract for 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 draft abstract for EITF Issue No. 06-2, "Accounting for Sabbatical Leave and Other Similar Benefits Pursuant to FASB Statement No. 43," 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 addition years of service accumulates pursuant to paragraph 6(b) of Statement 43, Accounting for Compensated Absences
The draft abstract for 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)," address whether the scope of this Issue should include all nondiscretionary amounts assessed by governmental authorities, all nondiscretionary amounts assessed by governmental authorities in connection with a transaction with a customer, or only sales, use, and value added taxes. The Issue also addresses how taxes assessed by a governmental authority within the scope of this Issue should be presented in the income statement (That is, Gross versus Net Presentation).
The EITF invites individuals and organizations to send written comments on all matters within the draft abstracts by May 4, 2006. Comments will be considered by the EITF at the June 14-15, 2006 EITF meeting. Interested parties should submit their comments by email to firstname.lastname@example.org, File Reference No. EITF0501, EITF0602, or EITF0603, respectively.
About the Financial Accounting Standards Board
Since 1973, the Financial Accounting Standards Board has been the designated organization in the private sector for establishing standards of financial accounting and reporting. Those standards govern the preparation of financial reports and are officially recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants. Such standards are essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent and comparable financial information. For more information about the FASB, visit our website at www.fasb.org.