FASB moves to simple majority vote; releases ED on derivatives; issues Statement 145.

• Position: Accounting & auditing news - Financial Accounting Standards Board - Brief Article

Following proposals to streamline its process, the Financial Accounting Foundation has decided to change the FASB's voting process from a supermajority to a simple majority vote. The decision received unanimous support by the FAF Trustees and was effective immediately. The Trustees also decided to retain a seven-member board.

In other actions, the FASB has released an exposure draft, Amendment of Statement 133 on Derivative Instruments and Hedging Activities. The ED amends Statement No. 133, Accounting for Derivative Instruments and Hedging Activities, to clarify the definition of a derivative. Comments on the proposal are due July 1.

Also issued was FASB Statement No. 145, Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13, and Technical Corrections. The statement updates, clarifies and simplifies existing accounting pronouncements.

Statement 145 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...