Delay in the application of SFAS no. 167, Amendments to FASB Interpretation no. 46 (R)

FASB has agreed to give investment managers of certain mutual funds, hedge funds, private equity funds and venture capital funds a deferral from the consolidated reporting requirements under SFAS no 167, Amendments to FASB Interpretation No. 46(R).

The deferral would be effective for a reporting entity's interest in off-balance-sheet vehicles, such as variable interest entities, as long as:

The variable interest entity has the attributes of an investment company as described in paragraph 946-10-15-2;
The main attributes are that the variable interest entity reports its assets at fair value and that its primary business activity involves investing its assets, usually in the securities of other entities not under common management, for current income, appreciation, or both. Ownership in the entity is represented by units of investments, such as shares of stock or partnership interests, to which proportionate shares of net assets can be attributed. The variable interest entity must also be a separate legal entity.
The reporting entity does not have an obligation to fund losses of the variable interest entity that could potentially be significant.; and
The reporting entity does not have an interest in the variable interest entity that absorbs a disproportionate share of the variable interest entity's actual losses.

The Board has deferred the discussions to next year and expects to issue some guidance in late 2010.

Delay in the application of SFAS no. 167, Amendments to FASB Interpretation no. 46 (R)

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