FASB Holds April 10 Meeting

At its April 10, 2024, meeting, the FASB discussed its projects on (1) refinements to the scope of the guidance on derivatives in ASC 815, (2) enhancements to the hedge accounting guidance in ASC 815, and (3) narrow-scope improvements to the interim disclosure requirements.

The Board made tentative decisions related to the following:

• The assessment of predominant characteristics under ASC 815. In particular, the Board decided that (1) a fair value assessment would replace the current assessment and (2) the predominant characteristics assessment would only be required at contract inception.
• Certain clarifications and other improvements related to “the accounting for the grantee of a share-based payment in a contract with a customer.”
• Transition, transition disclosures, and early adoption.

The Board has directed its staff to draft a proposed Accounting Standards Update (ASU) related to this project for a vote by written ballot. In addition, the Board has concluded that the benefits of these proposed amendments would most likely outweigh the costs.

For more information, see the tentative Board decisions on the FASB’s Web site.

The Board discussed feedback received on its proposed ASU Codification Improvements to Hedge Accounting (released in November 2019). Specifically, the Board made tentative decisions related to several aspects of the guidance on “shared risk assessments for cash flow hedges.”

For more information, see the tentative Board decisions on the FASB’s Web site.

The Board discussed feedback received on its November 2021 proposed ASU Changes to Interim Disclosure Requirements. In addition to deciding to make certain clarifications and other updates to the proposed guidance, the Board indicated its intent to release a revised proposed ASU related to this project for a 90-day comment period and has directed the staff to draft the proposal for a vote by written ballot. The Board has also determined that the benefits of this proposal would be expected to outweigh the costs.

For more information, see the tentative Board decisions on the FASB’s Web site.