At the Financial Accounting Standards Advisory Council meeting yesterday, SEC Chief Accountant Donald T. Nicolaisen said the watchdog will provide to Congress later this year a report on off-balance-sheet activities, which often involve entities created to diversity risks and issue securities, leasing arrangements and other contractual obligations.

The 33-member advisory council is a sounding board on accounting issues for the Financial Accounting Standards Board.

FASB Chairman Robert Herz highlighted for the council a series of the FASB's recent technical activities that include equity-based compensation projects, merger accounting and fair value measurement.

Separately, Herz said FASB will not put in place its stock-option rule -- the proposal on required stock-option expensing is due any day now-- without first holding public roundtable discussions.