The Financial Accounting Standards Board decided in a 5-2 vote at its meeting on February 6, 2008, to approve proposed FASB Staff Position (FSP) No. SOP 07-1-a , Effective Date of AICPA Statement of Position 07-1. The decision indefinitely defers the effective date of AICPA Statement of Position (SOP) No. 07-1), Clarification of the Scope of the “Audit and Accounting Guide Investment Companies” and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies, which clarifies which companies are eligible to use accounting standards for investment companies.

To avoid penalizing companies that had adopted the provision early, the Board decided to allow those entities to either rescind or retain the accounting applied upon adoption.

In addition, the Board agreed that entities who elect to retain their adoption of the guidance must also apply it to all consolidated entities going forward, including those formed or acquired after the adoption of SOP No. 07-1.