FASB issues revised proposal on earnings per share; GASB releases proposal clarifying existing guidance.The Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). recently issued a revised exposure draft of a proposed standard that would make targeted improvements to the reporting of earnings per share. Specifically, the proposed changes would clarity earnings per share computations involving certain instruments, such as mandatorily convertible instruments and contractual obligations that may be settled with cash or by issuing shares. The proposal is a revision of the Dec. 2003 proposed statement, Earnings Per Share, which was issued as part of the board's ongoing efforts with the International Accounting Standards Board  An editor has expressed concern that this article or section is .Please help improve the article by adding information and sources on neglected viewpoints, or by summarizing and to bring about convergence between U.S. and international accounting standards. The proposed statement would be effective for interim and annual periods ending after June 15, 2006. A copy of the proposal may be downloaded from the FASB's Web site at www.fasb.org. Comments are due Nov. 30. In response to increased constituent CONSTITUENT. He who gives authority to another to act for him. 1 Bouv. Inst. n. 893. 2. The constituent is bound with whatever his attorney does by virtue of his authority. interest, the Governmental Accounting Standards Board The Governmental Accounting Standards Board (GASB) is currently the source of generally accepted accounting principles (GAAP) used by State and Local governments in the United States of America. issued an exposure draft designed to clarify existing guidance on accounting for sales and pledges of receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed and future revenues. Specifically, the proposal will address whether certain transactions should be regarded as a sale or a collateralized borrowing. Such transactions are likely to comprise the sale of delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. taxes, certain mortgages, student loans or future revenues such as those arising from tobacco settlement agreements. The requirements of this proposed statement would be effective for financial statements for periods beginning after Dec. 16, 2005. Comments are due Dec. 30. Visit www.gasb.org to obtain a copy of the exposure draft. |
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