Emerging Issues Task Force Agenda Committee Report October 10, 2005

Transcription

1 1105REPORT Emerging Issues Task Force Agenda Committee Report October 10, 2005 Decisions on Proposed Issues 1. Accounting for Payments Made by a Service Provider to Equipment Manufacturers and/or Retailers/Resellers of Specialized Equipment That Is Necessary for a Customer to Receive a Service from the Service Provider 2. Accounting for Purchases of Life Insurance Determining the Amount That Could Be Realized in Accordance with FASB Technical Bulletin No. 85-4, Accounting for Purchases of Life Insurance Pages Other Matters o Decision to Cancel the November 9 10, 2005 EITF Meeting 15 o Status of Open Issues and Agenda Committee Items EITF Agenda Committee Report October 10, 2005

2 1105REPORT Emerging Issues Task Force Agenda Committee Decisions on Proposed Issues 1. Accounting for Payments Made by a Service Provider to Equipment Manufacturers and/or Retailers/Resellers of Specialized Equipment That Is Necessary for a Customer to Receive a Service from the Service Provider Certain vendors (service providers) provide services to their customers that require the customers to purchase special equipment to receive or utilize the service. Many times, the required equipment is manufactured, distributed, and sold to the end user by third party manufactures (including producers of components used by the manufactures such as manufacturers of computer chips) and retailers/resellers of the equipment without the direct involvement of the service provider (that is, the service provider does not manufacture or purchase and directly sell the required equipment to the purchasers of its services but, rather, relies on other enterprises to conduct those activities). The retailers/resellers, when selling the equipment, may provide information to the customer as to how to activate the service and, in some cases, will activate the service on behalf of the customer, but neither they nor the manufacturers are involved in the ongoing provision of services to the customer. Examples of such service providers could include providers of cable and satellite TV services, satellite radio services, and wireless telecom services. In some cases, the retail price of the specialty equipment required to receive the service provider's services that is sufficient to provide a reasonable profit margin to the manufacturers and retailers/resellers, may be cost prohibitive to the end customer. This may be particularly true during the initial stages of a service's introduction to the marketplace. Accordingly, a service provider may provide certain incentives to reduce the cost of the equipment to stimulate end customer demand for the equipment and, accordingly, the service provider's service. These incentives generally take one of the following forms: 1. The service provider makes payments of cash or transfers other consideration, generally in the form of rebates or similar incentives, directly to the end customer, as illustrated by the following: EITF Agenda Committee Report (Potential New Issues) October 10, 2005, p. 1

3 Equipment Manufacturers Service Provider Retailers/ Resellers Incentives paid End Customer In such instances, equipment manufacturers and retailers/resellers offer equipment for sale at prices based on the costs of the equipment plus a profit margin; however, the incentives paid to the end customer by the service provider reduce the cost of the equipment to an affordable price, which, in turn, the service provider hopes will stimulate demand for its services. 2. The service provider makes payments or transfers other consideration to either or both the manufacturers (including the producers of components) used in manufacturing the equipment and the retailers/resellers, as illustrated by the following: EITF Agenda Committee Report (Potential New Issues) October 10, 2005, p. 2

4 Equipment Manufacturers Incentives paid Service Provider Retailers/ Resellers Incentives paid End Customer As with the payments made directly to the end customers by the service providers, these incentives reduce the price paid by the end customer for the equipment by subsidizing the costs of manufacturing, distributing, and selling the equipment. Payments made by a service provider to its end customers are within the scope of EITF Issue No. 01-9, "Accounting for Consideration Given by a Vendor to a Customer (Including a Reseller of the Vendor's Products)." However, it is unclear whether incentives paid by service providers to equipment manufacturers and retailers/resellers, which are made for the same economic reasons that incentives are paid to the end customers, are also subject to the scope of Issue Accounting Issues and Alternatives Issue 1: Whether the provisions of Issue 01-9 should be applied to payments made by a service provider to manufacturers and/or retailers/resellers of specialized equipment that is necessary for a customer to receive a service from the service provider when the manufacturers and/or retailers/resellers of that equipment are not involved in the service provider's distribution chain. View A: The provisions of Issue 01-9 should be applied to payments made by a service provider to manufacturers and/or retailers/resellers of specialized equipment that is necessary EITF Agenda Committee Report (Potential New Issues) October 10, 2005, p. 3

5 for a customer to receive a service from the service provider even if those parties are not involved in the service provider's distribution chain. Proponents of View A note that the scope of Issue 01-9 does not specifically exclude such payments. Proponents of View A believe that the purpose of the incentives granted by the service provider is the same regardless of whether the payments are made directly to the end customer or to the manufacturers and retailers/resellers to incentivize a customer to buy the specialized equipment required to receive the service from which the service provider ultimately recognizes revenue. View B: The provisions of Issue 01-9 should not be applied to payments made by a service provider to manufacturers and/or retailers/resellers of specialized equipment that is necessary for a customer to receive a service from the service provider if those parties are not involved in the service provider's distribution chain. Proponents of View B look to paragraph 2 of Issue 01-9, which states, in part, that "the scope of Issue 01-9 includes vendor consideration to any purchasers of the vendor's products at any point along the distribution chain, regardless of whether the purchaser receiving the consideration is a direct customer of the vendor." Proponents of View B believe that payments made by a service provider to subsidize the costs to manufacture the equipment and/or produce component parts thereof should not be subject to the scope of Issue 01-9 because these manufactures do not directly sell, resell, or distribute the service provider's service. In addition, View B proponents believe that a retailer/reseller of the specialized equipment that is necessary for a customer to receive a service from the service provider is merely acting as an agent on behalf of the service provider (if it provides information to the customer as to how to activate the service or activates the service on behalf of the customer), primarily because the retailer/reseller does not and cannot provide the service. Therefore, View B proponents believe that the manufacturers and retailers/resellers are not involved in the service provider's distribution chain and thus consideration paid to them is not subject to the scope of Issue EITF Agenda Committee Report (Potential New Issues) October 10, 2005, p. 4

6 Agenda Committee Decisions: The Agenda Committee decided to add this Issue to the EITF Agenda. EITF Agenda Committee Report (Potential New Issues) October 10, 2005, p. 5

7 Appendix to Potential New Issue No. 1 Criteria for Adding Items to the EITF Agenda Committee 1. Does the issue have widespread relevance? The FASB staff believes that this issue would have widespread relevance. 2. Is there significant diversity in practice? The FASB staff has not been made aware that there is diversity in practice that currently exists for this issue. However, the staff understands that there are competing views regarding the application of Issue 01-9 to these fact patterns. 3. Is there conflicting guidance in existing GAAP? While the FASB staff does not believe there is a direct conflict within existing GAAP guidance, the staff acknowledges that there could be different views regarding the appropriate literature to apply to this Issue. 4. Is it likely the EITF will be able to resolve the issue in less than one year? The FASB staff believes that the EITF will be able to resolve the issue in less than one year. 5. Is the issue related to a current FASB project? If so, is there a pressing need to provide related guidance on a more timely basis than that expected from the FASB's activities? This issue is expected to be addressed as part of the revenue recognition project; however, this project will not be finalized for a number of years. 6. Is it reasonably likely that the FASB would conclude that only one answer is acceptable? The FASB staff believes that there are alternative views that Board members could find acceptable. 7. Is there an opportunity through addressing the issue to converge U.S. practices with international practices? Currently there is not a direct conflict within existing U.S. GAAP and international practices. EITF Agenda Committee Report (Potential New Issues) October 10, 2005, p. 6

8 2. Accounting for Purchases of Life Insurance Determining the Amount That Could Be Realized in Accordance with FASB Technical Bulletin No. 85-4, Accounting for Purchases of Life Insurance FASB Technical Bulletin No. 85-4, Accounting for Purchases of Life Insurance, requires that "the amount that could be realized under the insurance contract as of the date of the statement of financial position should be reported as an asset." Subsequent to the issuance of TB 85-4 there has been diversity in calculating "the amount that could be realized." For instance, some contracts provide the holder of the policies with an amount that upon surrender is greater if all individual policies are surrendered at the same time rather than if the policies were surrendered over a period of time. Generally, these types of contracts are either (1) multiple individual policies with a separate rider agreement that provides for the waiver of certain charges upon surrender of an individual policy, so long as all of the individual policies are terminated at the same time, or (2) a group life policy that has multiple certificates (individual life insurance for multiple employees). When structured as a group life policy, each insurance certificate, when terminated, provides for a stated cash surrender value with no termination charge. However, upon termination of the group life policy (which would terminate all of the remaining certificates), an additional value (for example, payment of deferred acquisition costs and cash stabilization reserves 1 ) is provided to the purchaser, provided that certain conditions are met. The issue is whether an entity should consider the contractual ability to surrender all of the individual-life policies (or certificates under a group life policy) together when determining the amount that could be realized in accordance with TB Background Life insurance policies are purchased by entities for a variety of purposes, including recovering the cost of providing employee benefits and protecting against the loss of "key persons." These policies are generally known as corporate-owned life insurance (COLI) or bank-owned life insurance (BOLI). 1 Represents funds held by an insurance carrier outside of the separate insurance policy account to provide for the payment of death benefits (included in the general assets of the insurance carrier versus the cash surrender value of the certificates being maintained in a separate funded account). The CSR is ultimately realized by the policy holder by any one of the following events: (1) the collection of death benefits, (2) credits to the cash surrender value based on favorable experience factors, or (3) a surrender of the group life policy contract. EITF Agenda Committee Report (Potential New Issues) October 10, 2005, p. 7

9 There are a few basic types of life insurance products in the marketplace. These products, however, can be combined and modified in many different ways. The resulting final product can be quite complex. For the purpose of this Issue, consider the following life insurance policies: Individual-Life Policy The individual-life policy is the simplest of policy structures an individual-life policy with one contract value component and no surrender charge. The amount that could be realized for this policy is the amount reported by the insurance carrier as the cash value for surrender of the policy on the balance sheet date. Multiple Individual-Life Policies Many entities purchase multiple individual-life policies covering various employees. Each policy has only one contract value component; however, each policy has a surrender charge. Pursuant to an agreement with the insurance carrier, the surrender charge on a single policy (and the surrender charges on the other policies) will be waived by the carrier if all of the individuallife policies are surrendered at the same time. If one or more, but not all, policies are surrendered, the policy holder will incur the surrender charges on the policies surrendered. This will result in a permanent loss of asset value to the extent of the surrender charge. Group Life Policy The group life policy constitutes the legal contract with the insurance carrier that covers individual-life insurance for multiple employees (certificates). The relationship between the certificates (issued for each individual insured employee) and the group life policy (and the primacy of the group life policy) is further illustrated in the following excerpt from the certificate: "The Group Policy Owner may terminate the Group Policy which would result in termination of this Certificate. Your Certificate will be automatically surrendered in all such cases." This language signifies that a certificate surrender would be part of a termination or surrender of the entire group life policy. While certificates are issued pursuant to the policy and EITF Agenda Committee Report (Potential New Issues) October 10, 2005, p. 8

10 form part of the policy, the group life policy contract is the controlling document. It should be noted that under the group life policy, individual life insurance certificates can be surrendered separately. In that situation, the cash surrender value for the certificate is received by the entity for the full surrender amount of that certificate. An additional amount (for example, payment of deferred acquisition costs and cash stabilization reserves) is guaranteed by the issuer and will ultimately be received by the entity either (1) upon surrender of the policy; although the payment of these amounts is delayed, or (2) through additions to the cash surrender value of the individual life insurance certificates over time. However, as noted earlier, the guaranteed amount associated with the surrender of the group life policy is contingent on certain criteria being met. This criteria can include change in control provisions, the insured entity (financial institutions) being a "well capitalized" institution under the regulatory capital rules, and other items that the staff understands to be typical business purpose provisions within the control of the entity. Accounting Issue and Alternatives Issue 1: Whether an entity should consider the contractual ability to surrender all of the individual-life policies together when determining the "amount that could be realized" in accordance with TB View A: No. The amount that could be realized shall be determined on an individual-life policy (or certificate under one group life policy) level. Proponents of View A believe that TB 85-4 is intended for the unit of account to be an individual-life insurance policy (or certificate) and that the valuation of that policy must be based only on the hypothetical surrender of that individual policy (or certificate) at the balance sheet date. Proponents of View A also believe that the surrender of all of the policies (or certificates) at the same time is similar to a gain contingency, which, under FASB Statement No. 5, Accounting for Contingencies, would not be recognized until the contingency (that is, the surrender of all individual policies (or certificates) together) is satisfied. EITF Agenda Committee Report (Potential New Issues) October 10, 2005, p. 9

11 View B: Yes. The amount that could be realized shall be determined based on surrendering all of the individual-life policies (or certificates) at the same time. Proponents of View B believe that the consideration of the ability to surrender all policies at the same time and also the consideration of all of the related contractual requirements is consistent with the principle on TB Specifically, they note that in the Appendix to TB 85-4, the background section states: 12. Some respondents asserted that reporting an insurance investment at its realizable value represents an accounting based on liquidation values. Those respondents suggested that the entity acquiring an insurance contract is, in many cases, economically or contractually committed to maintain the contract in force. They maintained that such a commitment virtually assures that benefits in excess of premiums paid would be realized and that the policy should be reported on a basis other than its cash surrender value. 13. This Technical Bulletin does not accept that view. The amount realizable under an insurance investment represents settlement values agreed to by an independent buyer and seller. The variety of yields and contract accumulation patterns available in the insurance marketplace provides the buyer and seller a variety of insurance and settlement options. There is no compelling justification to depart from the recording of such contracts based on agreed provisions. The commitment referred to by respondents is, in the staff's view, a commitment to ensure that assets are available to meet contractual obligations. The presence of such a commitment does not change the measurement of the asset that is expected to satisfy the obligation. [Emphasis added.] Proponents of View B believe that these statements indicate that the principle of determining the amount that could be realized in TB 85-4 requires analysis of the "agreed provisions" and "measurement of the asset that is expected to satisfy the obligation." Therefore, for multiple individual-life policies, proponents of View B believe that the determination of the amount that could be realized should include the additional contracts or riders that provide for the waiver of the surrender charges as these would be considered part of the "agreed provisions" considered by the buyer and seller in determining the settlement options. Likewise, under a group life policy, the determination of the amount should include the surrender value associated with the individual certificates as well as the value associated with the EITF Agenda Committee Report (Potential New Issues) October 10, 2005, p. 10

12 termination of the group life policy as the group life policy is the controlling document that provides for the "agreed provisions." Proponents of View B also believe that because the determination of the realizable amount is based on the hypothetical surrender of the policies (or certificates) at the balance sheet date, assuming they are surrendered on that date, it is appropriate to calculate the value based on the contractual provisions for the surrender of all policies together. In View B it is acknowledged that under a group life policy, the amount associated with the termination of the group life policy will be received over an extended period of time, subsequent to the surrender of the insurance certificates. The expected payment pattern should be considered in measuring the amount that will be realized. Proponents of View B recognize that the additional value related to the group life policy often is subject to the entity meeting prescribed conditions and would consider these conditions as of the balance sheet date. Therefore, on a balance sheet date when the entity did not meet the conditions for a guarantee of these amounts (for example, due to a recent change in control), the amount that could be realized would consider this circumstance. This may result in fluctuations in earnings from period to period. Issue 2: Whether a guarantee of the additional value associated with the group life policy affects the determination of the "amount that could be realized" for purposes of applying TB While the use of multiple insurance policies with a rider requires the termination of all insurance policies to receive a cash surrender value that is in excess of the cash surrender value that would have been received had the policies been surrendered over time, the use of a group life policy guarantees an additional value to the policy holder. As noted above, this additional value is guaranteed by either (1) surrendering the policy or (2) ultimately being credited to the cash surrender value of the individual life insurance certificates (unless in the case of the cash stabilization reserve, an entity may receive this amount through payment of death benefits). This EITF Agenda Committee Report (Potential New Issues) October 10, 2005, p. 11

13 guarantee occurs regardless of whether the entity surrenders individual certificates; provided that certain conditions are met. Therefore, given the differentiation between the two types of policies, if a decision is reached on View A for Issue 1, then Issue 2 will also need to be addressed. View A: No. The insurance carrier's guarantee of the additional value under a group life policy does not affect the amount that could be realized. Proponents of View A believe that TB 85-4 is intended for the unit of account to be an individual-life insurance policy (or certificate) and that the valuation of that policy (certificate) must be based only on the hypothetical surrender of that individual policy (certificate) at the balance sheet date. Given that the entity does not have a right to the additional value from the group life policy upon the surrender of individual-life certificates, these amounts should not be considered in determining the amount that "could be realized." Proponents of View A also point out that in order for this additional value to be guaranteed, the entity must meet certain provisions, as noted above, and that this requirement, they believe, results in gain contingency accounting similar to View A of Issue 1 for the surrendering all of the policies at the same time. View B: Yes. The amount that could be realized in accordance with TB 85-4 shall include the guaranteed additional value under a group life policy. Proponents of View B believe that the guarantee of the additional value has changed the nature of the contract under a group life policy as the realization of these amounts is not dependent on a future contingent event (that is, the surrender of all of the policies at the same time). Consistent with View B in Issue 1, proponents of this view acknowledge that the value associated with the additional value at the group life policy level is often subject to the entity meeting prescribed conditions and would consider these conditions as of the balance sheet date. Therefore, on a balance sheet date when the entity did not meet the conditions for the guarantee of the additional value (for example, due to a recent change in control), the value of the life insurance policy would not consider these amounts. This may result in fluctuations in earnings from period to period. EITF Agenda Committee Report (Potential New Issues) October 10, 2005, p. 12

14 In View B it is acknowledged that under a group life policy, the amount associated with the termination of the group life policy will be received over an extended period of time, subsequent to the surrender of the insurance certificates. The expected payment pattern should be considered in measuring the amount that will be realized. Agenda Committee Decisions: The Agenda Committee deferred making a decision on this potential new issue pending final issuance of the proposed FSP TB 85-4-a, "Accounting for Life Settlement Contracts by Investors." EITF Agenda Committee Report (Potential New Issues) October 10, 2005, p. 13

15 Appendix to Potential New Issue No. 2 Criteria for Adding Items to the EITF Agenda Committee 1. Does the issue have widespread relevance? The FASB staff believes that this issue would have widespread relevance. 2. Is there significant diversity in practice? The FASB staff has been made aware that diversity in practice exists for this issue. 3. Is there conflicting guidance in existing GAAP? While the FASB staff does not believe there is a direct conflict within existing GAAP guidance, the staff acknowledges that there could be different views regarding the appropriate literature to apply to this Issue. The FASB staff notes that the federal banking agencies have provided accounting guidance on BOLI (refer to Financial Institution Letter FIL ). 4. Is it likely the EITF will be able to resolve the issue in less than one year? The FASB staff believes that the EITF will be able to resolve the issue in less than one year. 5. Is the issue related to a current FASB project? If so, is there a pressing need to provide related guidance on a more timely basis than that expected from the FASB's activities? The FASB staff believes that this potential issue could be addressed by proposed FSP TB 85-4-a. 6. Is it reasonably likely that the FASB would conclude that only one answer is acceptable? The FASB staff believes that there are alternative views that Board members could find acceptable. 7. Is there an opportunity through addressing the issue to converge U.S. practices with international practices? Currently there is not a direct conflict within existing U.S. GAAP and international practices. EITF Agenda Committee Report (Potential New Issues) October 10, 2005, p. 14

16 Decision to Cancel the November 9 10, 2005 EITF Meeting The Agenda Committee agreed with the EITF Chairman's recommendation to cancel the November 9 10, 2005 EITF meeting due to an insufficient number of agenda items. The next scheduled meeting of the EITF is January 6, 2006, although the EITF Chairman noted that he would expect this meeting to be cancelled absent any new urgent financial reporting issues that can be resolved only by the EITF. EITF Agenda Committee Report (Meeting Cancellation) October 10, 2005, p. 15

17 Status of Open Issues and Agenda Committee Items The following represents the FASB staff's assessment of the status and immediate plans with respect to the open Issues on the Task Force's agenda. The Issues on the proposed agenda for the next meeting are considered either high priority issues or issues on which meaningful progress can be made within the staff's given complement of resources. The staff's prioritization of issues is based primarily on the FASB staff's understanding of the level of diversity in practice created by each respective Issue, the financial reporting implications of that diversity, the current interaction, if any, of the Issues with active Board projects, and current resource availability among the staff (with respect to both time and relevant technical expertise). Issue No. Description Date Added Date(s) Discussed Meeting EITF Liaison FASB Staff Immediate Plans Due Date - Deliverable 05-1 Accounting for the Conversion of an Instrument That Becomes Convertible upon the Issuer's Exercise of a Call Option 11/04 3/05, 6/05, 9/05 11/05 Graziano Oakley/ Sarno The FASB staff will prepare an Issue Summary for the next meeting. EITF meeting 05-H Accounting for Payments Made by a Service Provider to Equipment Manufacturers and/or Retailers/Resellers of Specialized Equipment That Is Necessary for a Customer to Receive a Service from the Service Provider 10/05 N/A 01/06 Hauser Cosper/ Beswick The FASB staff will prepare an Issue Summary for the next meeting. EITF meeting Status of Open Issues and Agenda Committee Items p. 16

18 Issue No Other EITF Issues including Inactive Issues Pending Developments in Board Projects Description Accounting Recognition for Certain Transactions involving Equity Instruments Granted to Other Than Employees Date Added Date(s) Discussed 5/00 7/00, 7/01, 11/01, 1/02, 3/02 Meeting FASB Staff Immediate Plans NA Sarno Pending further progress on Phase II of the Board's share-based payments project. Due Date - Deliverable The remaining issue in Issue is Issue 3: For transactions that include a grantee performance commitment, how the grantee should account for the contingent right to receive, upon performing as specified in the arrangement, grantor equity instruments that are the consideration for the grantee's future performance. The Task Force asked the FASB staff to focus on improving the guidance (originally from Issue 96-18) used to determine the date at which a commitment for counterparty performance to earn the equity instruments is reached Application of EITF Issue No. 98-5, "Accounting for Convertible Securities with Beneficial Conversion Features or Contingently Adjustable Conversion Ratios," to Certain Convertible Instruments 5/00 11/00, 1/01 Not scheduled Richards Pending further progress on Phase II of the Board's liabilities and equity project. NA N/A Status of Open Issues and Agenda Committee Items p. 17

19 Issue No. Other EITF Issues including Inactive Issues Pending Developments in Board Projects Description 02-D The Effect of Dual-Indexation both to a Company's Own Stock and to Interest Rates and the Company's Credit Risk in Evaluating the Exception under Paragraph 11(a)(1) of FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities Date Added 3/02 Date(s) Discussed N/A Meeting Not scheduled FASB Staff Jacobs Immediate Plans Pending further progress on Phase II of the Board's liabilities and equity project. Due Date - Deliverable N/A Interpretation of Constraining Conditions of a Transferee in a Collateralized Bond Obligation Structure 11/02 N/A Not scheduled Lusniak Pending developments in the Board's project on QSPE's and reconsideration by the FASB staff as to the extent of the issue. N/A Status of Open Issues and Agenda Committee Items p. 18

20 Issue No. Other EITF Issues including Inactive Issues Pending Developments in Board Projects Description Subsequent Accounting for Executory Contracts That Have Been Recognized on an Entity's Balance Sheet Date Added 5/03 Date(s) Discussed Meeting 11/03 Not scheduled FASB Staff Moss Immediate Plans Issue addresses the amortization of a recognized executory contract that has periods of both positive and negative cash flows. This issue is pending the Board's consideration of how the factors in paragraph 11(d) of Statement 142 should be evaluated in determining the useful life of an intangible asset (formerly EITF Issue 03-9). Due Date - Deliverable N/A 04-7 Determining Whether an Interest Is a Variable Interest in a Potential Variable Interest Entity 5/04 6/04, 9/04, 11/04, 3/05 Not scheduled Belcher At its March 30, 2005 meeting, the Board agreed to add a project to provide guidance on the variability that should be considered when determining whether an interest is a variable interest. The FASB staff will ask the Task Force to remove this Issue from its agenda at a future meeting. N/A Status of Open Issues and Agenda Committee Items p. 19

21 Issue No. Other EITF Issues including Inactive Issues Pending Developments in Board Projects Description 05-4 The Effect of a Liquidated Damages Clause on a Financial Instrument Subject to EITF Issue No , "Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock" Date Added Date(s) Discussed Meeting FASB Staff 2/05 6/05, 9/05 N/A Thuener/ Jacobs/ Richards Immediate Plans Pending further progress on a DIG Issue for determining whether a registration rights agreement is a derivative Due Date - Deliverable March 2006 Meeting Materials Status of Open Issues and Agenda Committee Items p. 20

22 Issue No. N/A Description Application of EITF Issue No , "Recognition of Interest Income and Impairment on Purchased and Retained Beneficial Interests in Securitized Financial Assets," When a Special-Purpose Entity Holds Equity Securities and Whether an Investment That Is Redeemable at the Option of the Investor Should Be Considered an Equity Security or Debt Security Issues Pending Further Consideration by the Agenda Committee Date Added 9/00 Date(s) Discussed N/A Meeting Not scheduled FASB Staff Jacobs Immediate Plans Pending consideration of an FASB project that may address the measurement of beneficial interests in securitized financial instruments. Due Date - Deliverable Pending developments in a Board project Status of Open Issues and Agenda Committee Items p. 21