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.
April 9, 2012 FASB Board Meeting
FASB
ratification of EITF tentative conclusions. The Board approved the
following consensuses reached at the March 15, 2012 meeting of the EITF and
decided to expose them for public comment for a period of 90
days.
Issue 12-A, "Not-for-Profit Entities: Classification of the
Sale of Donated Securities in the Statement of Cash Flows"
Cash
receipts resulting from the sale of donated securities by not-for-profit
entities (NFPs) that upon receipt are directed for sale and for which the NFP
has the ability to avoid significant investment risks and rewards through near
immediate conversion into cash should be classified as operating cash flows. If,
however, the donor restricted the use of those contributed resources (meeting
the conditions above) to the acquisition, construction, or improvement of
long-lived assets or to establish or increase a permanent or term endowment,
then those cash receipts should be classified as financing cash
flows.
The consensus-for-exposure does not require any additional
recurring disclosures.
The proposed amendments should be applied
prospectively to cash receipts on or after the date of adoption from the sale of
donated securities. Retrospective application to all prior periods presented
upon the date of adoption would be permitted but not required. The Task Force
decided that earlier adoption of the proposed amendments should be permitted.
Issue 12-C, "Subsequent Accounting for an Indemnification Asset
Recognized at the Acquisition Date as a Result of a Government-Assisted
Acquisition of a Financial Institution"
An indemnification asset
recognized in accordance with Subtopic 805-20, Business
Combinations—Identifiable Assets and Liabilities, and Any Noncontrolling
Interest, as a result of a government-assisted acquisition of a financial
institution involving an indemnification agreement should be subsequently
measured on the same basis as the asset subject to indemnification. Any
amortization of changes in value should be limited to any contractual
limitations on the amount and the term of the indemnification agreement. When
considering the contractual term of the indemnification agreement, an entity
should consider the lesser of the term of the indemnification agreement and the
term of the indemnified assets.
The consensus-for-exposure does not
require any additional recurring disclosures.
The proposed amendments
should be applied prospectively to any new indemnification assets acquired and
to changes in expected cash flows of existing indemnification assets occurring
on or after the date of adoption. Prior periods would not be adjusted and
earlier adoption would be permitted.
Issue 12-E, "Accounting for
Fair Value Information That Arises after the Measurement Date and Its Inclusion
in the Impairment Analysis of Unamortized Film Costs"
The
consensus-for-exposure would eliminate the rebuttable presumption in Topic 926,
Entertainment—Films, that the conditions leading to the write-down of
unamortized film costs after the balance sheet date existed as of the balance
sheet date. The consensus-for-exposure also would eliminate the requirement that
an entity incorporate into fair value measurements used in the impairment tests
the effects of any changes in estimates resulting from the consideration of
subsequent evidence if the information would not have been considered by market
participants at the measurement date.
The consensus-for-exposure does not
require any additional recurring disclosures. Entities would need to comply with
the disclosure requirements in Topic 855, Subsequent Events, and other relevant
Codification Topics, as applicable.
The proposed amendments should be
applied prospectively for impairment tests performed after the date of adoption
with earlier application permitted. In addition, earlier application would be
permitted if an entity's financial statements for the most recent period have
not yet been issued or, for a nonpublic entity, if the entity´s financial
statements have not yet been made available for issuance.