Last week the Financial Accounting Standards Board decided to expand the scope of the proposed implementation of sections of the Emerging Issues Task Force 03-1 (The Meaning of Other-Than Temporary Impairment and its Application to Certain Investments), officially delaying implementation. The scope now includes the securities under paragraphs 10 to 20 of the guidance, covering super-premium prepayable or callable securities as well as equity securities such as cost-method investments.

Earlier this month, The Board delayed the implementation of the guidance that relates to the impairment for price declines on debt securities due solely to rising interest rates. Specifically, FASB proposed to postpone the implementation of the effective date for paragraph 16 of EITF 03-1 as it applies to available-for-sale (AFS) debt securities that are underwater solely because of an increase in interest rates.

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