As mentioned at the ETS FAA '02 Budget mtg. today, below are new acctg. rules we need to be aware of:

SFAS142 - Goodwill and Other Intangibles
Effective in '02
Major point: Goodwill and intangible amortization discontinued

SFAS143 - Asset Retirement Obligations (ARO)
Effective in '03
Major point: Need to recognize obligations (set up a liability) related to planned asset retirements
<we may have an "opportunity" here>

Exposure Draft - PP&E Accounting
Deadline for comments: 10/15/01
Proposed Effective date: '03
Major points:
>PPE must be accounted for according to a standardized model, which includes specifically identified types of costs and stages of construction
>Overhaul costs> expensed as incurred
>GA and Overheads> expensed as incurred
>Composite depr> disallowed
>Cost of removal> expensed as incurred
Note: "general" regulatory acctg practices that are deemed contrary to GAAP will most likely NOT be allowed, but specific Ordered acctg. MAY (via FAS71 on regulated acctg)
Note: John Cobb is "polling" the industry on this topic