EITF 07-5 Untangled
Overview:Recently, the Financial Accounting Standards Board released information regarding EITF 07-5 determining whether an instrument (or an embedded feature) is indexed to an entity
Background and Summary of Key Provisions of EITF Issue 07-5
- High level discussion of key provisions/issues
- Effective date
- Expired contracts
- Modified contracts
- Interaction with other accounting standards (e.g., SFAS 133 (“indexed to own stock”
versus “clearly and closely related”), EITF 00-19, EITF 08-8, SFAS 128, etc.)
- Convergence with IFRS (IAS 32)
Application of EITF 07-5 to Equity-linked Financial Instruments and Potential
- Functional currency denominated warrants/other options
- Functional currency denominated convertible debt and preferred stock classified as
debt under SFAS 150
- Forward sale/purchase contracts
- ISDA contracts
Application of EITF 07-5 to Foreign Currency-denominated Equity-linked
Financial Instruments, Share-based Payment Award Valuation Instruments, other
equity-linked instruments, and Potential Implementation Challenges
- Foreign currency denominated warrants/other options
- Foreign currency denominated convertible debt
Who Should Attend:- CFO's - CPAs - Controllers - Accountants - Auditors - Business Officers - Business Valuation Specialists - Financial Directors/Analysts - Senior Finance Executives
In July 2008, Adrian Mills began a two-year assignment as a Practice Fellow with the Financial Accounting Standards Board (FASB) in Norwalk, Connecticut, specializing in financial instruments and fair value accounting matters.
Mr. Mills joins the FASB from the National Office of Deloitte & Touche LLP (“Deloitte”) where he is a Senior Manager in Accounting Standards and Communications. In this role, he participated in the development of the Firm’s guidance on technical accounting matters and responses to standard setting initiatives in both the United States and internationally.
Prior to his tenure with the Accounting Standards and Communications Group, Mr. Mills served a number of energy, manufacturing, and real estate clients in the Dallas, Texas, office of Deloitte.
Mr. Mills is a member if the American Institute of Certified Public Accountants, and maintains CPA licenses in Texas and Connecticut. Mr. Mills received his Bachelor of Business Administration and Masters in Public Accounting from the University of Texas at Austin.
In July 2008, Adrian Mills began a two-year assignment as a Practice Fellow with the Financial Accounting Standards Board (FASB) …
Jon is a senior manager in Ernst & Young’s On-Call Advisory Services practice in New York. Jon has over eight years of experience advising a multitude of the Ernst & Young’s public and privately-held clients. Jon is currently focused on evaluating complex transactions involving highly structured financial instruments, derivatives and hedging accounting, securitization and structured finance, and consolidation issues in the context of due diligence, financial statement audits, and advisory services. Jon is also responsible for advising and educating structuring and marketing professionals at large financial institutions, investment banks, and private equity companies on the aforementioned accounting matters.
Jon is also active in monitoring the current developments of the FASB, EITF, and SEC. Jon actively participates with other senior members of Ernst & Young in advising International Swaps and Derivatives Association (ISDA), with the primary role of interpreting and commenting on U.S.-based accounting standards as well as international accounting standards. Jon recently assisted ISDA with the development and drafting thought leadership and alternative views that were presented during the EITF's working group meetings on EITF issue 07-5. Jon played a prominent role in drafting ISDA's comment letter on EITF Issue 07-5. Jon was also involved with discussing with the FASB staff and Ernst & Young’s National office certain alternative views contained in the EITF Issue Summary on 07-5.
Prior to joining the On-Call practice Jon supervised and managed financial statement and integrated audits as well as acted as an advisor to various multi-national public and privately held companies. Prior to joining Ernst & Young, Jon was a senior in Arthur Andersen’s audit practice in New York. Jon graduated from the University of Scranton in 1999 with a Bachelor’s of Science in Accounting (with a concentration in writing) and is a certified public accountant in the Commonwealth of Pennsylvania.
Jon is a senior manager in Ernst & Young’s On-Call Advisory Services practice in New York. Jon has over eight …
Ben Neuhausen is the National Director of Accounting for BDO Seidman, LLP. He is a specialist on financial reporting, with particular expertise in accounting for compensation arrangements (both executive compensation and qualified retirement plans), financial instruments including derivatives, consolidation and equity method, leasing, insurance, real estate, motion pictures, oil and gas, and health care. At BDO his responsibilities include: advising clients on financial reporting for complex or unusual transactions, assisting public companies respond to comments from the staff of the Securities and Exchange Commission, and representing BDO before accounting standards-setting organizations.
Prior to joining BDO, Ben was a partner in the Professional Standards Group of Arthur Andersen LLP. From 1979 to 1981, Ben was an FASB Fellow.
Ben has been a member of numerous professional committees, task forces, and working groups. He is currently chairman of the AICPA Accounting Standards Executive Committee (AcSEC) and a member of the Financial Reporting Committee of the Institute of Management Accountants. He also chaired the AICPA Task Force on Real Estate Time-Share Transactions.
Ben holds an MBA in Accounting from New York University and a BA in Economics from Michigan State University. He is a member of the AICPA, the Illinois CPA Society, and the Institute of Management Accountants.
Ben Neuhausen is the National Director of Accounting for BDO Seidman, LLP. He is a specialist on financial reporting, with …
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