The Financial Accounting Standards Board decided to postpone the effective date for Financial Interpretation No. 46 for calendar year companies. According to the Ernst & Young’s On Call Advisory Services Accounting Alert, the deferral applies to all VIEs held by public companies for all entities acquired before Feb. 1, 2003. Companies will adopt the provisions at the end of periods ending after Dec. 15, or Dec. 31 for calendar year companies.
“The Board agreed to provide this deferral to allow time for certain implementation issues to be addressed through the issuance of a modification to the Interpretation, and indicated that it expects to issue this modification in final form prior to the end of 2003,” E&Y writes.
