Staff Accounting Bulletin No. 111, 17769-17770 [E9-8801]
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Federal Register / Vol. 74, No. 73 / Friday, April 17, 2009 / Rules and Regulations
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By order of the Board of Governors of the
Federal Reserve System, April 14, 2009.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E9–8847 Filed 4–16–09; 8:45 am]
BILLING CODE 6210–01–P
are not rules or interpretations of the
Commission, nor are they published as
bearing the Commission’s official
approval. They represent interpretations
and practices followed by the Division
of Corporation Finance and the Office of
the Chief Accountant in administering
the disclosure requirements of the
Federal securities laws.
SECURITIES AND EXCHANGE
COMMISSION
Dated: April 13, 2009.
Elizabeth M. Murphy,
Secretary.
17 CFR Part 211
PART 211—[AMENDED]
[Release No. SAB 111]
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Staff Accounting Bulletin No. 111
dwashington3 on PROD1PC60 with RULES
AGENCY: Securities and Exchange
Commission.
ACTION: Publication of Staff Accounting
Bulletin.
SUMMARY: This staff accounting bulletin
(‘‘SAB’’) amends Topic 5.M. in the Staff
Accounting Bulletin Series entitled
Other Than Temporary Impairment of
Certain Investments in Debt and Equity
Securities (‘‘Topic 5.M.’’). On April 9,
2009, the FASB issued FASB Staff
Position No. FAS 115–2 and FAS 124–
2, Recognition and Presentation of
Other-Than-Temporary Impairments
(‘‘FSP 115–2’’) to provide guidance for
assessing whether an impairment of a
debt security is other than temporary.
This SAB maintains the staff’s previous
views related to equity securities. It also
amends Topic 5.M. to exclude debt
securities from its scope.
DATES: Effective April 13, 2009.
FOR FURTHER INFORMATION CONTACT:
Robert Malhotra, Senior Advisor, or
Adam Brown, Professional Accounting
Fellow, Office of the Chief Accountant,
at (202) 551–5300; or Stephanie
Hunsaker, Associate Chief Accountant,
Division of Corporation Finance, at
(202) 551–3400, Securities and
Exchange Commission, 100 F Street,
NE., Washington, DC 20549.
SUPPLEMENTARY INFORMATION: The
statements in staff accounting bulletins
VerDate Nov<24>2008
15:01 Apr 16, 2009
Jkt 217001
Accordingly, Part 211 of Title 17 of
the Code of Federal Regulations is
amended by adding Staff Accounting
Bulletin No. 111 to the table found in
Subpart B.
Staff Accounting Bulletin No. 111
This staff accounting bulletin (‘‘SAB’’)
hereby amends and replaces Topic 5.M.
in the Staff Accounting Bulletin Series
entitled Other Than Temporary
Impairment of Certain Investments in
Debt and Equity Securities (‘‘Topic
5.M.’’). On April 9, 2009, the FASB
issued FASB Staff Position No. FAS
115–2 and FAS 124–2, Recognition and
Presentation of Other-Than-Temporary
Impairments (‘‘FSP 115–2’’) to provide
guidance for assessing whether an
impairment of a debt security is other
than temporary. Topic 5.M. (as
amended) maintains the staff’s previous
views related to equity securities. It also
amends Topic 5.M. to exclude debt
securities from its scope.
Note: The text of SAB 111 will not appear
in the Code of Federal Regulations.
Topic 5: Miscellaneous Accounting
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M. Other Than Temporary Impairment
of Certain Investments in Equity
Securities
Facts: FASB Staff Position No. FAS
115–2 and FAS 124–2, Recognition and
Presentation of Other-Than-Temporary
Impairments (‘‘FSP 115–2’’) does not
define the phrase ‘‘other than
PO 00000
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temporary’’ for available-for-sale equity
securities. For its available-for-sale
equity securities, Company A has
interpreted ‘‘other than temporary’’ to
mean permanent impairment. Therefore,
because Company A’s management has
not been able to determine that its
investment in Company B’s equity
securities is permanently impaired, no
realized loss has been recognized even
though the market price of Company B’s
equity securities is currently less than
one-third of Company A’s average
acquisition price.
Question: For equity securities
classified as available-for-sale, does the
staff believe that the phrase ‘‘other than
temporary’’ should be interpreted to
mean ‘‘permanent’’?
Interpretive Response: No. The staff
believes that the FASB consciously
chose the phrase ‘‘other than
temporary’’ because it did not intend
that the test be ‘‘permanent
impairment,’’ as has been used
elsewhere in accounting practice.1
The value of investments in equity
securities classified as available-for-sale
may decline for various reasons. The
market price may be affected by general
market conditions which reflect
prospects for the economy as a whole or
by specific information pertaining to an
industry or an individual company.
Such declines require further
investigation by management. Acting
upon the premise that a write-down
may be required, management should
consider all available evidence to
evaluate the realizable value of its
investment in equity securities
classified as available-for-sale.
There are numerous factors to be
considered in such an evaluation and
their relative significance will vary from
case to case. The staff believes that the
following are only a few examples of the
1 FASB Staff Position No. 115–1 and 124–1, ‘‘The
Meaning of Other-Than-Temporary Impairment and
Its Application to Certain Investments’’ refers to
this SAB for a discussion of considerations
applicable to a determination as to whether a
decline in market value below cost of an equity
security, at a particular point in time, is other than
temporary.
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17769
17770
Federal Register / Vol. 74, No. 73 / Friday, April 17, 2009 / Rules and Regulations
factors which, individually or in
combination, indicate that a decline in
value of an equity security classified as
available-for-sale is other than
temporary and that a write-down of the
carrying value is required:
a. The length of the time and the
extent to which the market value has
been less than cost;
b. The financial condition and nearterm prospects of the issuer, including
any specific events which may
influence the operations of the issuer
such as changes in technology that may
impair the earnings potential of the
investment or the discontinuance of a
segment of the business that may affect
the future earnings potential; or
c. The intent and ability of the holder
to retain its investment in the issuer for
a period of time sufficient to allow for
any anticipated recovery in market
value.
Unless evidence exists to support a
realizable value equal to or greater than
the carrying value of the investment in
equity securities classified as availablefor-sale, a write-down to fair value
accounted for as a realized loss should
be recorded. Such loss should be
recognized in the determination of net
income of the period in which it occurs
and the written down value of the
investment in the company becomes the
new cost basis of the investment.
[FR Doc. E9–8801 Filed 4–16–09; 8:45 am]
BILLING CODE 0000–00–P
Administration, 7500 Standish Pl.,
Rockville, MD 20855, 240–276–8337,
e-mail: melanie.berson@fda.hhs.gov.
Intervet,
Inc., P.O. Box 318, 29160 Intervet Lane,
Millsboro, DE 19966, filed a supplement
to NADA 104–494 that provides for use
of PANACUR (fenbendazole)
Suspension 10% in horses for the
control of various internal parasites. The
supplemental NADA provides for a
revised human food safety warning on
product labeling. The supplemental
NADA is approved as of March 25,
2009, and the regulations are amended
in 21 CFR 520.905a to reflect the
approval and a current format.
Approval of this supplemental NADA
did not require review of additional
safety or effectiveness data or
information. Therefore, a freedom of
information summary is not required.
The agency has determined under 21
CFR 25.33(a)(1) that this action is of a
type that does not individually or
cumulatively have a significant effect on
the human environment. Therefore,
neither an environmental assessment
nor an environmental impact statement
is required.
This rule does not meet the definition
of ‘‘rule’’ in 5 U.S.C. 804(3)(A) because
it is a rule of ‘‘particular applicability.’’
Therefore, it is not subject to the
congressional review requirements in 5
U.S.C. 801–808.
SUPPLEMENTARY INFORMATION:
List of Subjects in 21 CFR Part 520
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Animal drugs.
[Docket No. FDA–2009–N–0665]
Therefore, under the Federal Food,
Drug, and Cosmetic Act and under
authority delegated to the Commissioner
of Food and Drugs and redelegated to
the Center for Veterinary Medicine, 21
CFR part 520 is amended as follows:
Oral Dosage Form New Animal Drugs;
Fenbendazole Suspension
PART 520—ORAL DOSAGE FORM
NEW ANIMAL DRUGS
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Food and Drug Administration
21 CFR Part 520
AGENCY:
Food and Drug Administration,
1. The authority citation for 21 CFR
part 520 continues to read as follows:
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HHS.
ACTION:
Final rule.
The Food and Drug
Administration (FDA) is amending the
animal drug regulations to reflect
approval of a supplemental new animal
drug application (NADA) filed by
Intervet, Inc. The supplemental NADA
provides for a revised human food
safety warning for use of fenbendazole
suspension in horses.
DATES: This rule is effective April 17,
2009.
FOR FURTHER INFORMATION CONTACT:
Melanie R. Berson, Center for Veterinary
Medicine (HFV–110), Food and Drug
Authority: 21 U.S.C. 360b.
dwashington3 on PROD1PC60 with RULES
SUMMARY:
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15:01 Apr 16, 2009
Jkt 217001
2. Amend § 520.905a as follows:
a. Revise paragraph (a);
■ b. Remove paragraph (e);
■ c. Redesignate paragraph (d) as
paragraph (e);
■ d. Add new paragraph (d); and
■ e. Revise newly redesignated
paragraphs (e)(1)(i), (e)(1)(iii), (e)(2)(i),
(e)(2)(iii), (e)(3)(i), (e)(3)(ii) , and
(e)(4)(i).
The revisions and addition are to read
as follows:
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§ 520.905a
Fenbendazole suspension.
(a) Specifications. Each milliliter of
suspension contains 100 milligrams
(mg) fenbendazole.
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(d) Special considerations—(1) See
§ 500.25 of this chapter.
(2) Fenbendazole suspension 10
percent and approved forms of
trichlorfon, when used concomitantly
for treating the indications provided in
paragraph (e) of this section and for
treating infections of stomach bot as
provided in § 520.2520, have been
shown to be compatible and not to
interfere with one another.
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(1) * * *
(i) Amount. Administer orally 5 mg
per kilogram (/kg) (2.3 mg per pound (/
lb)) for the control of large strongyles,
small strongyles, and pinworms; 10 mg/
kg for the control of ascarids.
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(iii) Limitations. Administer by dose
syringe or suitable plastic syringe. Do
not use in horses intended for human
consumption.
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(i) Amount. Administer orally 5 mg/
kg of body weight (2.3 mg/lb).
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(iii) Limitations. Retreatment may be
needed after 4 to 6 weeks. Cattle must
not be slaughtered within 8 days
following last treatment.
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(i) Amount. Administer orally 10 mg/
kg of body weight.
(ii) Indications for use. For the
removal and control of stomach worm
(4th stage inhibited larvae/type II
ostertagiasis), Ostertagia ostertagi, and
tapeworm, Moniezia benedeni.
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(i) Amount. Administer orally 5 mg/
kg of body weight (2.3 mg/lb).
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Dated: April 9, 2009.
Steven D. Vaughn,
Director, Office of New Animal Drug
Evaluation, Center for Veterinary Medicine.
[FR Doc. E9–8822 Filed 4–16–09; 8:45 am]
BILLING CODE 4160–01–S
E:\FR\FM\17APR1.SGM
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[Federal Register Volume 74, Number 73 (Friday, April 17, 2009)]
[Rules and Regulations]
[Pages 17769-17770]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-8801]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 211
[Release No. SAB 111]
Staff Accounting Bulletin No. 111
AGENCY: Securities and Exchange Commission.
ACTION: Publication of Staff Accounting Bulletin.
-----------------------------------------------------------------------
SUMMARY: This staff accounting bulletin (``SAB'') amends Topic 5.M. in
the Staff Accounting Bulletin Series entitled Other Than Temporary
Impairment of Certain Investments in Debt and Equity Securities
(``Topic 5.M.''). On April 9, 2009, the FASB issued FASB Staff Position
No. FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-
Than-Temporary Impairments (``FSP 115-2'') to provide guidance for
assessing whether an impairment of a debt security is other than
temporary. This SAB maintains the staff's previous views related to
equity securities. It also amends Topic 5.M. to exclude debt securities
from its scope.
DATES: Effective April 13, 2009.
FOR FURTHER INFORMATION CONTACT: Robert Malhotra, Senior Advisor, or
Adam Brown, Professional Accounting Fellow, Office of the Chief
Accountant, at (202) 551-5300; or Stephanie Hunsaker, Associate Chief
Accountant, Division of Corporation Finance, at (202) 551-3400,
Securities and Exchange Commission, 100 F Street, NE., Washington, DC
20549.
SUPPLEMENTARY INFORMATION: The statements in staff accounting bulletins
are not rules or interpretations of the Commission, nor are they
published as bearing the Commission's official approval. They represent
interpretations and practices followed by the Division of Corporation
Finance and the Office of the Chief Accountant in administering the
disclosure requirements of the Federal securities laws.
Dated: April 13, 2009.
Elizabeth M. Murphy,
Secretary.
PART 211--[AMENDED]
0
Accordingly, Part 211 of Title 17 of the Code of Federal Regulations is
amended by adding Staff Accounting Bulletin No. 111 to the table found
in Subpart B.
Staff Accounting Bulletin No. 111
This staff accounting bulletin (``SAB'') hereby amends and replaces
Topic 5.M. in the Staff Accounting Bulletin Series entitled Other Than
Temporary Impairment of Certain Investments in Debt and Equity
Securities (``Topic 5.M.''). On April 9, 2009, the FASB issued FASB
Staff Position No. FAS 115-2 and FAS 124-2, Recognition and
Presentation of Other-Than-Temporary Impairments (``FSP 115-2'') to
provide guidance for assessing whether an impairment of a debt security
is other than temporary. Topic 5.M. (as amended) maintains the staff's
previous views related to equity securities. It also amends Topic 5.M.
to exclude debt securities from its scope.
Note: The text of SAB 111 will not appear in the Code of Federal
Regulations.
Topic 5: Miscellaneous Accounting
* * * * *
M. Other Than Temporary Impairment of Certain Investments in Equity
Securities
Facts: FASB Staff Position No. FAS 115-2 and FAS 124-2, Recognition
and Presentation of Other-Than-Temporary Impairments (``FSP 115-2'')
does not define the phrase ``other than temporary'' for available-for-
sale equity securities. For its available-for-sale equity securities,
Company A has interpreted ``other than temporary'' to mean permanent
impairment. Therefore, because Company A's management has not been able
to determine that its investment in Company B's equity securities is
permanently impaired, no realized loss has been recognized even though
the market price of Company B's equity securities is currently less
than one-third of Company A's average acquisition price.
Question: For equity securities classified as available-for-sale,
does the staff believe that the phrase ``other than temporary'' should
be interpreted to mean ``permanent''?
Interpretive Response: No. The staff believes that the FASB
consciously chose the phrase ``other than temporary'' because it did
not intend that the test be ``permanent impairment,'' as has been used
elsewhere in accounting practice.\1\
---------------------------------------------------------------------------
\1\ FASB Staff Position No. 115-1 and 124-1, ``The Meaning of
Other-Than-Temporary Impairment and Its Application to Certain
Investments'' refers to this SAB for a discussion of considerations
applicable to a determination as to whether a decline in market
value below cost of an equity security, at a particular point in
time, is other than temporary.
---------------------------------------------------------------------------
The value of investments in equity securities classified as
available-for-sale may decline for various reasons. The market price
may be affected by general market conditions which reflect prospects
for the economy as a whole or by specific information pertaining to an
industry or an individual company. Such declines require further
investigation by management. Acting upon the premise that a write-down
may be required, management should consider all available evidence to
evaluate the realizable value of its investment in equity securities
classified as available-for-sale.
There are numerous factors to be considered in such an evaluation
and their relative significance will vary from case to case. The staff
believes that the following are only a few examples of the
[[Page 17770]]
factors which, individually or in combination, indicate that a decline
in value of an equity security classified as available-for-sale is
other than temporary and that a write-down of the carrying value is
required:
a. The length of the time and the extent to which the market value
has been less than cost;
b. The financial condition and near-term prospects of the issuer,
including any specific events which may influence the operations of the
issuer such as changes in technology that may impair the earnings
potential of the investment or the discontinuance of a segment of the
business that may affect the future earnings potential; or
c. The intent and ability of the holder to retain its investment in
the issuer for a period of time sufficient to allow for any anticipated
recovery in market value.
Unless evidence exists to support a realizable value equal to or
greater than the carrying value of the investment in equity securities
classified as available-for-sale, a write-down to fair value accounted
for as a realized loss should be recorded. Such loss should be
recognized in the determination of net income of the period in which it
occurs and the written down value of the investment in the company
becomes the new cost basis of the investment.
[FR Doc. E9-8801 Filed 4-16-09; 8:45 am]
BILLING CODE 0000-00-P
