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.

May 5, 2010 FASB Board Meeting

Revenue Recognition and Leases. The Board discussed the following issues:

  1. The potential effects of the proposed revenue recognition model on the accounting for real estate transactions
  2. Whether an entity should apply the proposed model to contracts for the sale of goods or services that are not an output of the entity’s ordinary activities
  3. How an entity would apply the proposed model to transactions in which an entity sells a product to a customer and agrees (or has the right) to repurchase that product from the customer.
No decisions were reached at this meeting. The Board will consider these issues at a future meeting.

Insurance Contracts.  The Board discussed contract boundaries and decided that the boundary of an insurance contract is the point at which the insurer either is no longer required to provide coverage or has the right to reassess the risk of the particular policyholder and, as a result, can set a price that fully reflects that risk.