FASB To Release Discussion Doc. on MOU Completion/Implementation-'Significant Change To Financial Reporting System'

Chairing his final Financial Accounting Standards Board meeting on Sept. 29, 2010, Bob Herz noted in his opening remarks that FASB plans to release a Discussion Document in mid-October, seeking comment on various matters relating to implementation of the suite of remaining standards to be issued by FASB and the International Accounting Standards Board in accordance with the FASB-IASB Memorandum of Understanding.

Discussion Doc On MOU Standards Implementation Expected Mid-October
Herz referred to the Discussion Document as 'important,' noting that its purpose was to obtain "stakeholder feedback on the effective dates, transition methods, and other matters related to completion of the MOU projects."

"Once the MOU projects are completed," observed Herz, "the board recognizes those represent a significant amount of change in the financial reporting system." He noted that the boards are interested in "thoughtful feedback" on these issues.

Herz added, "My understanding is that the IASB will also be issuing a similar document to their constituents around the same time."

FASB Acts on EITF Consensuses
FASB agreed to ratify one final EITF consensus, and agreed to release three EITF consensuses for exposure (i.e. public comment). Further details on the board's discussion are in this FEI summary available to FEI members only; read about our new Associate Member category. Also watch for FASB's Summary of Board Decisions (which provides a factual summary) posted in FASB's News Center same-day or next day following FASB board meetings; the FEI summaries generally include additional 'color commentary' from the meeting.

"May You Continue To Make Informed And Wise Decisions"
In his closing remarks, Herz noted, "this is the last meeting I've had the honor of chairing this board," adding, "I don't use a gavel, but I am handing over a bell" to Leslie Seidman, named by the Financial Accounting Foundation (which oversees FASB) to serve as Acting Chairman beginning October 1.

"May you continue to make informed and wise decisions," Herz wished the board.

Seidman, speaking on behalf of the board members and staff, thanked Herz for his eight years of service at FASB, noting in particular how Herz "initiated a restructuring of the way GAAP is established in the U.S.," as well as overseeing the move to the Codification, and improved outreach to constituents.

With that, Herz rung his closing bell.

FASB, IASB Release 1st Phase of Joint Conceptual Framework

Yesterday, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) published final documents marking the first phase of their joint Conceptual Framework project. Each board had their own separate Concepts Statements, forming the framework on which accounting standards issued by the board(s) are to be based. As noted in the FASB-IASB joint news release:

The new framework builds on existing IASB and FASB frameworks. The IASB has revised portions of its framework; while the FASB has issued ‘Concepts Statement 8’ to replace ‘Concepts Statements 1 and 2’.

FASB's Concepts Statement No. 8 (aka 'CON 8') is entitled: Conceptual Framework for Financial Reporting—Chapter 1, The Objective of General Purpose Financial Reporting, and Chapter 3, Qualitative Characteristics of Useful Financial Information (a replacement of FASB Concepts Statements No. 1 and No. 2).

The IASB is holding a live webcast at 2 separate times (to accomodate different time zones) today (Wed. Sept. 29) to introduce this first phase of the joint conceptual framework. The webcast will include responding to some questions from listeners.

Yesterday's release marks completion of 'phase A' of the boards' joint Conceptual Framework project. Read more about the remaining phases B-H on the IASB's or FASB's websites.

SEC Proposes Disclosures, Issues Interp Release

At an open commission meeting earlier today, the SEC voted unanimously to propose new disclosures for short-term borrowings.

The comment deadline on the proposed new disclosures for short-term borrowings will be 60 days after publication in the Federal Register.

Additionally, the SEC voted to issue an interpretive release providing guidance on existing MD&A requirements for liquidity and funding disclosure. The interpretive release will be effective immediately upon publication in the Federal Register.

Read more in SEC's press release, which also provides links to the proposed rule (proposed disclosures), and the interpretive release.

Some will say that some of these disclosures arise from the Lehman brothers debacle. Earlier this year, the SEC posted a 'sample letter' of a letter sent to public companies regarding disclosures of repo, securities lending, and certain other transactions.

See also blogger Francine McKenna's take on the post-Lehman world. She participated earlier this week on a panel with NYT's Floyd Norris and the Lehman bankruptcy examiner, Anton Valukas. Read her post in her blog, Re: The Auditors: "Top Ten Things Lawyers Should Know About Auditors."