Tentative Board Decisions
Tentative Board decisions are provided for those interested in
following the Board´s deliberations. All of the reported decisions are
tentative and may be changed at future Board meetings.
December 16, 2014 FASB Board Meeting
Conceptual Framework—Measurement and Presentation.
Measurement
The Board discussed how to separate liabilities into categories that
will facilitate future discussions of how to determine changes in their
carrying amounts. The Board identified three broad types: liabilities
with fixed amounts and timings, liabilities with variable amounts or
variable amounts and timings, and liabilities with fixed amounts and
variable timings. The Board noted that the same method of determining
carrying amounts may not necessarily be appropriate for every liability
in a category. Considerations to be discussed at future meetings
include (1) when it would be appropriate to update carrying amounts for
changes in cash flow estimates or discount rates, (2) the effect of the
cost constraint, and (3) the effects on net income or comprehensive
income of any changes in carrying amounts.
Presentation
The Board decided that line items should be the primary focus in
developing standards for presentation in financial statements. The Board
also decided that the activity from which (or within which) the
recognized item resulted is the primary factor for identifying useful
subtotals in an income statement and that the timing of realization or
settlement is the primary factor in identifying useful subtotals on the
balance sheet.
Finally, the Board decided to postpone discussions about other
comprehensive income in the conceptual framework project until it has
further discussions in its project on financial performance reporting.