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Article: FASB statement changes some equities to liabilities. (Assurance: technical developments, professional issues and engagement charges).(Financial Accounting Standards Board)
- Article from:
- Accounting Today
- Article date:
- June 16, 2003
- Author:
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NORWALK, CONN. -- When is equity a liability? More often than it used to be, thanks to a new statement issued by the Financial Accounting Standards Board.
FASB Statement 150, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity, requires certain types of freestanding instruments to be reported as liabilities in financial statements.
"For quite a while, we've been looking at instruments that seem like equities when you look at them one way but liabilities when you look at them another way," said FASB senior project manager Halsey Bullen. "We weren't able to resolve all the issues--at least not yet--but the ...