FASB Issues FSP Defining “Public Entity” To Include Conduit Borrower

October 26, 2006

FEI Summary

On Oct. 24, 2006, the Financial Accounting Standards Board (FASB) released final FASB Staff Position (FSP) No. FAS 126-1, "Applicability of Certain Disclosure and Interim Reporting Requirements for Obligors for Conduit Debt Securities."

·         The FSP clarifies the definition of "public entity" in certain accounting standards to include entities that are conduit bond obligors for conduit debt securitize traded in a public market.

The FSP amends a number of accounting pronouncements, including:

·         APB Opinion No. 28, Interim Financial Reporting;

·         FAS 69, Disclosures about Oil and Gas Producing Activities,

·         FAS 109, Accounting for Income Taxes,

·         FAS 126, Exemption from Certain Required Disclosures about Financial Instruments for Certain Nonpublic Entities,

·         FAS 131, Disclosures about Segments of an Enterprise and Related Information,

·         FAS 132 (revised 2003), Employers’ Disclosures about Pensions and Other Postretirement Benefits, 

·         FAS 141, Business Combinations; and

·         AICPA Audit and Accounting Guides, Health Care Organizations, and Not-for-Profit Organizations.

For summaries of other recent FASB news, see FEI’s FASB News page.

Prepared Oct. 26, 2006 by Edith Orenstein (eorenstein@FinancialExecutives.org), Director, Technical Policy Analysis, Financial Executives International (FEI).  This summary does not represent FEI opinion, unless specifically noted above