Investor Advisory Committee Meeting Recap

May 14, 2019

The Investor Advisory Committee (IAC) met on May 14, 2019. At the meeting, the FASB staff delivered updates and IAC members provided input on the following FASB topics:

• IAC Emerging Issues and Trends: IAC members discussed their observations on the implementation of the revenue recognition standard (Topic 606, Revenue from Contracts with Customers) and leasing standard (Topic 842, Leases). Consistent with prior IAC meetings, members also reiterated the recommendation for additional transparency of information on a geographical basis.
• Disclosures by Business Entities about Government Assistance: IAC members discussed whether the benefits of disclosures by business entities about government assistance justify the costs of providing that information. Members noted that the usefulness of this disclosure may depend on the industry in which an entity operates. However, most members agreed that for entities that receive government assistance, disclosures about government assistance—specifically relating to its recurrence—would be considered useful financial information to investors. Members also discussed considerations and concerns relating to the scope of the guidance in proposed Accounting Standards Update, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance.
• Segment Reporting: IAC members discussed different approaches for providing additional disclosures about each reportable segment. Members generally supported requiring additional information by segment but expressed concerns that any approach could have unintended consequences on the information reported. Some members observed that an approach utilizing principles-based disclosure requirements could be useful, however, members were concerned with the application of the management approach more generally and how it is used for segment identification.  
• Financial Instruments—Credit Losses, Vintage Disclosures for Gross Write-Offs and Gross Recoveries: IAC members discussed the Board's decision to not require disclosure of gross write-offs and gross recoveries by vintage. Members indicated that they anticipated receiving this type of vintage information as part of the credit losses standard (Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326). Members also confirmed that gross write-offs and gross recoveries by vintage would be useful in their analyses.