The Financial Accounting Standards Board has issued a proposed staff position that defines an obligor (or debtor) of a conduit municipal bond traded on a public exchange, or market, as a public entity. A conduit municipal bond is an offering by a governmental entity that is not for its own use but for the use of a private party (conduit bond obligor). The proposal addresses questions concerning whether a conduit bond obligor with publicly traded conduit debt securities should be considered a public entity and apply certain existing authoritative accounting literature. The proposed staff position would amend Accounting Principles Board Opinion No. 28, Interim Financial Reporting; and FASB Statements No. 69, Disclosures about Oil and Gas Producing Activities; No. 109, Accounting for Income Taxes; No. 126, Exemption from Certain Required Disclosures about Financial Instruments for Certain Nonpublic Entities; No. 131, Disclosures about Segments of an Enterprise and Related Information; and No. 141, Business Combinations. The comment deadline is July 31. Read the FASB news release.
