FFSC Annual Meeting -- 1 Technical Committee Report  Three issues: Accounting for hedging transactions Update of Section IV Pending Changes to the Financial and Management Accounting Guidelines

FFSC Annual Meeting -- 2 To the Update the Guidelines…  Insert text into section II after “Treatment of Inventory Items (Other Than Breeding Stock) and before “Treatment of Raised Breeding Stock.”  Update Glossary with list of new terms used in this section or related to hedging transactions  Add Appendix I: Example of Accounting for Hedging Transactions

FFSC Annual Meeting -- 3 Recommended Next Steps  August 31, 2013 deadline to receive comments, edits  September 30, 2013 Finalize edits and send to Executive Committee for approval  October 31, 2013 Edit Guidelines to add Hedging Transactions and send to Executive Committee for approval  November 30, 2013 Publish updated version of Guidelines

FFSC Annual Meeting -- 4 Timeline for changes to Section IV Fall – 2013 Incorporate changes from Technical committee meeting on Tuesday Winter – 2014 Technical committee review and refine and approve changes Spring – 2014 Send updated Section IV to the FFSC Executive committee for approval June – 2014 Distribute updated Section IV to the entire FFSC board of Directors Summer – 2014 Motion for approval of updated Section IV at the annual meeting January – 2015 Publish updated version of FFSC financial guidelines

FFSC Annual Meeting -- 5 Pending Changes  Dick Wittman’s comments from  Alan Miller’s comments from April 2011  Tom Murphy’s suggest updates from July 2011 annual meeting Address these issues along the same timeline as the changes to Section IV