OUTCOMES - FASB JANUARY 18, 2006 BOARD MEETING

1. The disclosure requirements of FASB Statement No. 132 (revised 2003), Employers’ Disclosures about Pensions and Other Postretirement Benefits, would be revised as follows:
   • The existing requirement to disclose a reconciliation of the over- or underfunded status to amounts recognized in the statement of financial position would be eliminated (paragraph 5(c) of Statement 132(R)).
     
   • The existing requirement to disclose information about a recognized additional minimum liability would be replaced with a requirement to disclose the nature and amount of changes in plan assets and benefit obligations recognized in net income and in other comprehensive income of each period (paragraph 5(i) of Statement 132(R)).
     
   • Disclosure would be required in the postretirement benefits footnote of the accumulated amount of changes in plan assets and benefit obligations that have been recognized in other comprehensive income and will be recycled into net income in future periods.
     
   • The examples in Statement 132(R) would be amended to clarify and illustrate the existing requirement to disclose the current and noncurrent portion of postretirement benefit plan assets and liabilities.
     
   • The current requirement to disclose the measurement date (if other than the reporting date) would be eliminated when the measurement date change is effective (paragraphs 5(k) and 8(j) of Statement 132(R)).
     
   • Disclosure would be required of the amount of estimated net actuarial gains and losses and prior service costs that will be amortized from accumulated comprehensive income into net income over the next fiscal year.
   
   
2. FASB Statements No. 87, Employers' Accounting for Pensions, and No. 106, Employers' Accounting for Postretirement Benefits Other Than Pensions, would be amended to incorporate existing guidance on the selection of the discount rate that currently resides in other literature (such as the basis for conclusions in Statement 106).
   
3. Except as noted in item 4 below, an entity would be required to adopt the proposed changes in its first fiscal year ending after December 15, 2006. The entity would initially apply the requirements through retrospective application to all prior periods presented, unless it concludes it is not practicable to estimate the amount of a deferred tax valuation allowance that would be required in those prior periods. The Board directed the staff to provide several examples of the initial application in the Exposure Draft of the proposed Statement.
   
4. An entity that currently measures plan assets and obligations as of a date earlier than the date of its financial statements would be required to change to a fiscal-year-end measurement date in fiscal years beginning after December 15, 2006. That entity would be required to adjust the opening balance of retained earnings for changes in plan assets and benefit obligations (that is, the funded status) and changes that would be recognized in other comprehensive income between the previous measurement date and the beginning of 2007. Curtailment and settlement gains and losses would be recognized as a component of net benefit cost in the quarter in which they occur.
   
5. The comment period for the Exposure Draft would be 60 days. The Board expects to issue that Exposure Draft in March.

1. An entity’s accounting policy for the recognition of tax benefits in a leveraged lease should be consistent with its accounting policy for the recognition of tax benefits required in the Board’s current uncertain tax positions project.
   
2. An entity should not reclassify a lease that does not meet the characteristics for leveraged lease accounting based on the most recent recalculation.
   
3. An entity should update all assumptions based on the most current information when performing a recalculation of a leveraged lease transaction.
   
4. An entity should not include interest and penalties in the recalculation of a leveraged lease transaction.