FASB’s Emerging Issues Task Force issued a draft abstract intended to improve the comparability of earnings per unit calculations for master limited partnerships. The abstract addresses how current-period earnings of a master limited partnership should be allocated to general partners, limited partners, and, when applicable, incentive distribution rights, when applying EITF Issue no. 07-4, Application of the Two-Class Method Under FASB Statement No. 128, Earnings per Share, to Master Limited Partnerships.
Comments on the abstract were due Feb. 8 and are scheduled to be considered by the task force at its meeting March 12–13. The draft is available at www.fasb.org/eitf/0704DA2.pdf.