Balance Sheet

Regulation S-X

3-01 Consolidated Balance Sheets

5-01 Application of Rules 5-01 to 5-04

5-02 Balance sheets

FASB Statements

FASB 150 (2003)

Certain Financial Instruments with Characteristics of both Liabilities and Equity

Amends FASB 128 and 133

Summary

FASB revisits debt/equity hybrids

Certain hybrid securities to be classified as debt
rather than equity

e.g. trust preferred securities
Also, shares subject to redemption in event of employee death

For already outstanding securities:

Generally became effective with first interim period after 6.15.03
Further extensions have been granted for some issuers / some securities
Adopt a change in accounting principle
no restatement

Can adversely affect compliance with financial covenants
Can affect whether an entity is consolidated
because variable interest entity determination depends on equity at risk

FASB Staff Positions

FSP FAS 150-1 (2003)
Freestanding Financial Instruments -
More Than One Option or Forward Contract
FSP FAS 150-2 (2003)
Mandatorily Redeemable Shares -
Redemption price different than book value
FSP FAS 150-3 (2003)
Delays effective date of FASB 150
FSP FAS 150-4 (2003)
Application to ESOPs

Regulator Response

Federal Reserve Board (2003)
Federal Energy Regulatory Commission (2003)

FASB 129 (1997)

Information about Capital Structure

FASB Staff Positions

FSP FAS 129-1 (2004)
Re: Contingently Convertible Securities

FASB 78 (1983)

Classification of Obligations That Are Callable
by the Creditor

FASB 47 (1981)

Disclosure of Long-Term Obligations

FASB 37 (1980)

Balance Sheet Classification of Deferred Income Taxes

Superseded by FASB 96; Reinstated by FASB 109

FASB 6 (1975)

Classification of Short-Term Obligations Expected
to be Refinanced

Superseded by FASB 96; Reinstated by FASB 109

FIN 8 (1976)

Classification of a Short-Term Obligation Repaid Prior to Being Replaced by a Long-Term Security
Interprets FASB 8
FASB summary
FASB status

SEC FAQs

SAB 103

Topic 3.C Redeemable preferred stock
Topic 4.A Subordinated debt
Topic 4.B S Corporations
Topic 4.C Change in capital structure
Topic 4.E Receivables from sale of stock
Topic 4.F Limited partnerships
Topic 4.G Notes from affiliates
Topic 5.Q Increasing Rate Preferred Stock
Topic 5.S Quasi-Reorganization
Topic 11.E Chronological ordering of data

Accounting FAQs (Mar. 2001)

Topic I.A Redeemable equity securities

Current accounting issues (Aug. 2001)

Topic II.I Valuing equity instruments
Topic II.N Cost vs equity method
Topic II.O Intangible assets

Related Topics

Accounting Issues

Capitalizing interest cost (FASB 34)

Consolidation / SPEs

Convertible securities

Depreciation

Derivatives / Hedging (FASB 133)

Leases (FASB 13)

Marketable securities (FASB 115)

Utility Accounting Issues

Clear Gif