SUMMARY OF BOARD DECISIONS
Summary of Board decisions are provided for the information and
convenience of constituents who want to follow the Board’s deliberations. All of
the conclusions reported are tentative and may be changed at future Board
meetings. Decisions are included in an Exposure Draft for formal comment only
after a formal written ballot. Decisions in an Exposure Draft may be (and often
are) changed in redeliberations based on information provided to the Board in
comment letters, at public roundtable discussions, and through other
communication channels. Decisions become final only after a formal written
ballot to issue an Accounting Standards Update.
March 3, 2010 Board Meeting
Accounting
for financial instruments.
Short-term receivables and
payables and certain other investments
The Board decided that
receivables and payables arising in the normal course of business that are due
in customary terms not exceeding approximately one year, excluding credit card
receivables, for which the entity’s business strategy is to hold the instrument
for collection or payment of contractual cash flows, should be measured at
carrying value. Receivables would be subject to the impairment model in the
proposed Accounting Standards Update.
The Board decided to provide a
practicability exception from the fair value measurement requirements for
certain types of investments that can only be redeemed with the issuer at a
maximum of the amount contributed. Those instruments would be measured at the
redemption value. Examples of these types of investments will be included in the
proposed Update.
Deferred tax assets
The Board discussed
alternative methods for assessing a valuation allowance for a deferred tax
asset.
The Board decided that deferred tax asset valuations on debt
instruments measured at fair value with changes recognized in other
comprehensive income should be evaluated in combination with other deferred tax
assets of an entity.
Financial
statement presentation. The Board discussed the application of the
proposed presentation model to nonpublic business entities. The Board decided to
include nonpublic business entities in the scope of the proposed Accounting
Standards Update with one modification. A nonpublic business entity would not be
required to disclose in the notes an analysis of changes in significant asset
and liability line items.
The Board directed the staff to include in the
proposed Update questions for respondents about how nonpublic business entities
would apply the other aspects of the proposed presentation model and whether
users of nonpublic business entity financial statements would benefit from an
analysis of changes in significant asset and liability line items. The Board
will reconsider the scope and effective date of the final Update after
considering comments received on the Exposure Draft of the proposed Update.