AIG 2005 Annual Report Download - page 120

Management’s Discussion and Analysis of
Financial Condition and Results of Operations Continued
of Variable Interest Entities.’’ See also Note 19 of Notes to ment of APB Opinion No. 29’’ (FAS 153). FAS 153 amends
Consolidated Financial Statements. APB Opinion No. 29, ‘‘Accounting for Nonmonetary
In July 2003, the American Institute of Certified Public Transactions.’’
Accountants issued SOP 03-1. See also Note 21 of Notes to On June 1, 2005, the FASB issued Statement No. 154,
Consolidated Financial Statements. ‘‘Accounting Changes and Error Corrections’’ (FAS 154).
In December 2003, FASB issued Statement of Financial FAS 154 replaces APB Opinion No. 20, ‘‘Accounting
Accounting Standards No. 132 (Revised), ‘‘Employers’ Disclo- Changes’’ and FASB Statement No. 3, ‘‘Reporting Accounting
sures About Pensions and Other Post Retirement Benefits,’’ Changes in Interim Financial Statements.’’
which revised disclosure requirements with respect to defined At the June 2005 meeting, the EITF reached a consensus
benefit plans. See also Note 15 herein. with respect to Issue No. 04-5, ‘‘Determining Whether a
At the March 2004 meeting, the Emerging Issue Task Force General Partner, or the General Partners as a Group, Controls
(EITF) reached a consensus with respect to Issue No. 03-1, a Limited Partnership or Similar Entity When the Limited
‘‘The Meaning of Other-Than-Temporary Impairment and Its Partners Have Certain Rights’’.
Application to Certain Investments.’’ On September 30, 2004, On June 29, 2005, FASB issued Statement 133 Implementa-
the FASB issued FASB Staff Position (FSP) EITF Issue 03-1-1, tion Issue No. B38, ‘‘Embedded Derivatives: Evaluation of Net
Effective Date of Paragraphs 10-20 of EITF Issue No. 03-1, Settlement with Respect to the Settlement of a Debt
‘‘The Meaning of Other-Than-Temporary Impairment and Its Instrument through Exercise of an Embedded Put Option or
Application to Certain Investments.’’ In November 2005, Call Option.’’
FASB issued FSP FAS 115-1, ‘‘The Meaning of Other-Than- On June 29, 2005, FASB issued Statement 133 Implementa-
Temporary Impairment and Its Application to Certain Invest- tion Issue No. B39, ‘‘Application of Paragraph 13(b) to Call
ments,’’ which replaces the measurement and recognition Options That Are Exercisable Only by the Debtor.’’
guidance set forth in Issue No. 03-1 and codifies certain On September 19, 2005, FASB issued Statement of Posi-
existing guidance on impairment. tion 05-1, ‘‘Accounting by Insurance Enterprises for Deferred
At the September 2004 meeting, the EITF reached a Acquisition Costs in Connection with Modifications or Ex-
consensus with respect to Issue No. 04-8, ‘‘Accounting Issues changes of Insurance Contracts.’’
Related to Certain Features of Contingently Convertible Debt On February 16, 2006, FASB issued Statement No. 155,
and the Effect on Diluted Earnings per Share.’’ ‘‘Accounting for Certain Hybrid Financial Instruments.’’
In December 2004, the FASB issued Statement No. 123 For further discussion of these recent accounting standards
(revised 2004) (FAS 123R), ‘‘Share Based Payment.’’ In April and their application to AIG, see Note 1(gg) of Notes to
2005, the SEC delayed the effective date for the revised FAS Consolidated Financial Statements.
No. 123.
On December 16, 2004, the FASB issued Statement
No. 153, ‘‘Exchanges of Nonmonetary Assets — An Amend-
68 AIG m Form 10-K