June 29, 1992
TO: ACCOUNTING/TREASURERS COMMITTEE NO. 30-92
INDEPENDENT ACCOUNTANTS ADVISORY GROUP
RE: ACCOUNTING POLICY SUBCOMMITTEE PROJECTS
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The Accounting Policy Subcommittee (APS) met in Boston on
June 15, selected a new chairman, and established its working
agenda for the coming months. This memo identifies the current
subcommittee projects and the subcommittee members, including
project leaders, who have volunteered for each project. The APS
membership list is attached.
I. PIK Bond Accounting
Develop detailed illustrative guidance for PIK bond accounting to
assist the industry in implementing the AICPA Statement of
Position (SOP) on High Yield Bonds (the SOP is expected to be
issued in August, 1992 and will likely require use of the
effective interest, or OID, method for PIK bond income accruals.)
Tom London, MFS - Project Leader
John Gargana, Lord Abbett
Allen Goldstein, Price Waterhouse
II. Accounting For Fund Expenses Paid Through Directed Brokerage
Develop accounting and reporting guidance for funds where certain
fund operating expenses are paid by brokers or other third
parties.
Denis McAuley, National Funds - Project Leader
Robert DeNormandie, Coopers & Lybrand
Ron Wolfsheimer, Calvert
(with assistance from Rich Silver, Colonial)
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III. Accounting For Complex Securities
Issue a paper providing general guidance on a number of complex
securities and develop subsequent more detailed guidance for
particular complex securities as needed. Use as a basis for the
general guidance a paper developed by John Tesoro of Arthur
Andersen for the AICPA Investment Companies Committee. This
project is being taken up by the APS because the AICPA Investment
Companies Committee was unable to secure AcSEC approval to
complete the project due to potential conflicts with an ongoing
FASB project on financial instruments.
Tim Jacoby, Fidelity - Project Leader
Richard Meyerowich, Deloitte & Touche
Vin Nave, Boston Company
Bruce Smith, Van Eck
IV. Tax Basis Accounting
The APS will continue working on a long-term project to
determine the desirability and feasibility of adopting a tax
basis approach to accounting and reporting for income and
distributions. Accounting/Treasurers Committee members will soon
receive a questionnaire regarding various book/tax accounting
differences. The survey results will be discussed during Dave
Taylor’s panel at the September Tax & Accounting Conference.
Vin Nave, Boston Company - Project Leader
Allen Goldstein, Price Waterhouse
(with assistance from Dave Taylor, Federated)
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The Accounting Policy Subcommittee invites members of the
Accounting/Treasurers Committee and Independent Accountants
Advisory Group to provide input or assistance in connection with
any of the above activities. Anyone wishing to assist should
contact the project leader or any of the other individuals
listed.
Timothy J. Jacoby Donald J. Boteler
Chairman Assistant Vice President
Accounting Policy Subcommittee Operations