69, The Meaning of "Present Fairly in Conformity With Generally Accepted Accounting Principles" in the Independent Auditor's Report, identifies Financial Accounting Standards Board emerging issues task force (EITF) consensuses
as sources of established generally accepted accounting principles.
The EITF agreed that in applying the consensuses in this issue there is a rebuttable presumption that an option granted within six months of the repurchase of an outstanding option would be considered a replacement option.
94-5 Accounting problems: Are all past consensuses for this issue rescinded?
The EITF reached additional consensuses at the January 19, 1995, meeting.
RELATED ARTICLE: NEW EITF CONSENSUSES ADOPTED JANUARY 19, 1995
Tentative conclusions reached 9/21-22/94; consensuses reached on certain of the tentative conclusions 11/17/94; to be discussed at a future meeting
Consensuses reached 5/19/94 on employee termination costs; 5/19/94 consensuses modified 11/17/94; consensuses reached 11/17/94 on other exit costs
The EITF reached the following consensuses
for RRCs that meet all the conditions for reinsurance accounting:
Because of the long-term nature of these contracts, the E ITF had to decide whether these consensuses
would be applicable to existing contracts or only to new contracts.
The EITF reached three consensuses
on this issue, which provide different accounting rules depending on the investee's role (acquiree or acquiror) in the business combination.
This is significant since accountants must know both existing and future consensuses
and understand when they are applicable.
on issues 2, 3 and 4 apply to both primary and fully diluted EPS calculations if the convertible preferred stock is a common stock equivalent.