Enclosed is the latest edition of KPMG’s Defining Issues. It describes two Consensuses approved by the EITF that, if ratified by the FASB, will apply to tax benefits from paying dividends on employees’ share-based payment awards and to nonrefundable advance payments made to parties engaged to perform research and development activities for the reporting entity. This edition also covers a tentative conclusion that would provide accounting and disclosure guidance on collaborative arrangements, discussions of both the application of the two-class method of calculating earnings per share by typical master limited partnerships and accounting for complex convertible debt instruments, and the SEC staff’s announcement that it will no longer accept liability classification for financial instruments that meet the conditions for temporary equity classification under ASR 268 and EITF D-98.