Federal Register / Vol. 74, No. 73 / Friday, April 17, 2009 / Rules and Regulations 17769 

1FASB 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. 

* * * * * 

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 

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] 

■ 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

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 


dwashington3 on PROD1PC60 with RULESER17AP09.009</GPH>
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 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Food and Drug Administration 

21 CFR Part 520 

[Docket No. FDA–2009–N–0665] 

Oral Dosage Form New Animal Drugs; 

Fenbendazole Suspension 

AGENCY: Food and Drug Administration, 

HHS. 

ACTION: Final rule. 

SUMMARY: 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 

Administration, 7500 Standish Pl., 

Rockville, MD 20855, 240–276–8337, 

e-mail: melanie.berson@fda.hhs.gov. 

SUPPLEMENTARY INFORMATION: 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. 

List of Subjects in 21 CFR Part 520 

Animal drugs. 

■ 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: 

PART 520—ORAL DOSAGE FORM 

NEW ANIMAL DRUGS 

■ 1. The authority citation for 21 CFR 

part 520 continues to read as follows: 

Authority: 21 U.S.C. 360b. 

■ 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: 

§ 520.905a Fenbendazole suspension. 

(a) Specifications. Each milliliter of 

suspension contains 100 milligrams 

(mg) fenbendazole. 

* * * * * 

(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. 

(e) * * * 

(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. 

* * * * * 

(iii) Limitations. Administer by dose 

syringe or suitable plastic syringe. Do 

not use in horses intended for human 

consumption. 

(2) * * * 

(i) Amount. Administer orally 5 mg/ 

kg of body weight (2.3 mg/lb). 

* * * * * 

(iii) Limitations. Retreatment may be 

needed after 4 to 6 weeks. Cattle must 

not be slaughtered within 8 days 

following last treatment. 

(3) * * * 

(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. 

* * * * * 

(4) * * * 

(i) Amount. Administer orally 5 mg/ 

kg of body weight (2.3 mg/lb). 

* * * * * 

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 


dwashington3 on PROD1PC60 with RULES