This edition of KPMG’s Defining Issues describes a Consensus reached by the EITF that, if ratified by the Financial Accounting Standards Board (FASB), will apply to collateral-assignment “split-dollar” life insurance arrangements, and a new tentative conclusion on nonrefundable advance payments made to parties engaged to perform research and development activities for the reporting entity.

Also in this edition: EITF discussions of accounting for tax benefits from paying dividends on employees’ share-based payment awards, the presentation of revenues, expenses, and sharing payments made and received under collaborative arrangements, and convertible debt instruments that permit partial cash settlement.

And, the views expressed by the SEC staff on the classification of redeemable securities issued in the form of shares, accounting requirements for hybrid financial instruments, and assessing and measuring ineffectiveness in hedging relationships.