Recent releases of professional standards, July 2002

NOTE: This listing of releases is provided regularly in the Statement as a member service. The list is to alert you to recent professional standards issues and is not intended to cover issues fully. Consult the actual standard for complete information.

Financial Accounting Standards Board

Statement No. 145, Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections updates, clarifies and simplifies existing accounting pronouncements. It rescinds Statement 4, which required all gains and losses from extinguishment of debt to be aggregated and, if material, classified as an extraordinary item, net of related income tax effect. As a result, the criteria in Opinion 30 will now be used to classify those gains and losses. Statement 64 amended Statement 4 and is no longer necessary. Statement 44 was issued to establish accounting requirements for the effects of transition to the provisions of the Motor Carrier Act of 1980. Because the transition has been completed, Statement 44 is no longer necessary.

Statement 145 amends Statement 13 to require that certain lease modifications that have economic effects similar to sale-leaseback transactions be accounted for in the same manner as sale-leaseback transactions. This statement also makes technical corrections to existing pronouncements.

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