FASB defers implementation of Interpretation no. 46.
* FASB defers implementation of Interpretation no. 46,
"Consolidation of Variable Interest Entities"
(www.alcpa.org/pubs/jofa/apr2003/news.htm#financial) and releases all
exposure draft (ED) of a clarification
(www.fasb.org/draft/ed_prop_lnterp_vie.pdf) of its requirements. The
deferral applies only to such entities created before February 1, 2003,
and gives companies and their auditors more time to determine which ones
to include in their consolidated financial statements. Companies must
complete their evaluations and consolidate--for the first reporting
period ending after December 15--those variable interest entities of
which they are the primary beneficiary. Calendar-year companies must
include such consolidations in their December 31 financial statements
(www.fasb.org/news/nr100903.shtml. The board issued the ED in response
to constituents' concerns about implementation requirements; its
provisions would apply at the same time as those of the interpretation.
Comments are due by December 1.