Draft Abstract Approved
D58, Determining the Variability to Be Considered in Applying AcG-15
The Committee agreed to issue proposed Draft Abstract D58, which is based on FASB Staff Position No. FIN 46(R)-6, "Determining the Variability to Be Considered in Applying FASB Interpretation No. 46(R)."
It is expected that D58 will be posted on the CICA website for public comment by late June.
Abstracts to Be Withdrawn or Amended
The Committee continued its review of EIC Abstracts that are impacted by the new financial instruments standards dealing with the recognition, measurement and disclosure of financial instruments, hedges and comprehensive income.
EIC-32, Gold Loans
EIC-32 will be withdrawn as it is not applicable to those entities that have elected to apply the new financial instruments standards.
The Committee plans further discussions on the accounting for gold and similar loans at a future meeting.
The Committee discussed the changes that would be required to the following three Abstracts as a result of the new financial instruments standards. These discussions will continue at the Committee’s June 21, 2006 meeting:
EIC-70, Presentation of a Financial Instrument When a Future Event or Circumstance May Affect the Issuer’s Obligations
EIC-88, Debtor’s Accounting for a Modification or Exchange of Debt Instruments
EIC-101, Debtor’s Accounting for Changes in Line-of-Credit or Revolving-Debt Arrangements
The Committee agreed to make conforming amendments to the following 17 Abstracts as a consequence of the release of the new financial instruments standards. None of the changes affect the consensuses reached in the Abstracts.
EIC-46, Leveraged Leases
EIC-50, Special Warrants Convertible into Common Shares
EIC-54, Transfers of Receivables – Definition of Recourse
EIC-58, Accrued Interest Upon Conversion of Convertible Debt
EIC-68, Patronage Allocations
EIC-69, Recognition and Measurement of Financial Instruments Presented as Liabilities or Equity Under CICA 3860
EIC-72, Presentation of Members’ Shares in a Co-Operative Organization as Liabilities or Equity
EIC-74, Presentation of Preferred Shares Requiring the Issuer to Make Repurchases
EIC-75, Scope of CICA 3860 — Interests in Subsidiaries Presented in Non-Consolidated Financial Statements
EIC-77, Application of CICA 3840 to a Transaction Involving the Issuance of Non-Voting Participating Shares to an Unrelated Party
EIC-87, Balance Sheet Classification of Share Capital Issued by a Split Share Corporation
EIC-91, Offsetting an Obligation by Virtue of a Claim Against a Third Party
EIC-96, Accounting for the Early Extinguishment of Convertible Securities Through (1) Early Redemption or Repurchase and (2) Induced Early Conversion
EIC-121, Accounting for Wash Sales
EIC-122, Balance Sheet Classification of Callable Debt Obligations and Debt Obligations Expected to be Refinanced
EIC-148, Accounting for Shares that Provide Investors with a Sale Right
EIC-150, Determining Whether an Arrangement Contains a Lease
Review of other Abstracts that are impacted by the new financial instruments standards will continue at future meetings.
Potential Abstract
Income Taxes Arising from Partnership Income
The Committee discussed a potential Draft Abstract on the accounting for income taxes related to companies that consolidate partnership interests that have a different year end than the company. The Committee agreed to continue its discussion at a future meeting.
Issue Considered and Added to the EIC Agenda
Related Party Transactions — Basis of Measurement
The Committee agreed to add an issue to its agenda on the accounting for a transfer of an item to a related party that is a variable interest entity and for which the transferor is the primary beneficiary. This is a variation of the issue addressed in EIC-103, "Related Party Transactions — Meaning of Substantive Change and Measurement of Change in a Transfer of Ownership Interests."
