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.

1. Accounting for Service Concession Arrangements
2. Collaborative Arrangements
3. Scope of Modification Accounting in Topic 718, Compensation — Stock Compensation.

1. Supersede the guidance on preproduction costs of long-term supply arrangements within Subtopic 340-10, Other Assets and Deferred Costs — Overall, except for the guidance on capitalization of molds, tools, and dies that a supplier will not own that will be used in producing the products under the long-term supply arrangement in paragraph 340-10-25-2.
2. Amend the impairment testing guidance in Subtopic 340-40, Other Assets and Deferred Costs—Contracts with Customers, to clarify that:
   1. An entity would consider expected contract renewals and extensions when measuring the remaining amount of consideration an entity expects to receive.
   2. An entity would measure the consideration it expects to receive as the sum of the consideration it has already received but has not recognized as revenue, plus the amount it expects to receive in exchange for the goods or services to which the contract asset relates.
   3. The order of the impairment testing is (1) assets outside the scope of Topic 340 (for example, inventory within the scope of Topic 330, Inventory), then (2) assets within the scope of Topic 340, then (3) asset groups or reporting units within the scope of Topic 350, Intangibles—Goodwill and Other, and Topic 360, Property, Plant and Equipment.
3. Amend the loss contract test within the guidance in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts, so that the contract is the lowest level at which testing is required, while allowing entities to determine the provision for losses at the performance obligation level as an accounting policy election.
4. Amend the scope of Topic 606 to exclude all contracts (not only insurance contracts) that are within the scope of the guidance in Topic 944, Financial Services—Insurance.
5. Amend the scope of the derivatives guidance in Topic 815, Derivatives and Hedging, to exclude fixed odds wagering contracts of entities within the scope of Topic 924, Entertainment—Casinos.
6. Amend Example 7, Modification of a Services Contract, in Topic 606 to improve the alignment of the example and the principles in Topic 606.
7. Align the cost-capitalization guidance in Topic 946, Financial Services—Investment Companies, resulting in capitalization of direct incremental costs, for advisors to both private and public funds in Topic 946, Financial Services—Investment Companies.

8. Amend the guidance in Topic 310, Receivables, and Topic 942, Financial Services—Depository and Lending, to clarify that financial guarantees within the scope of Topic 460, Guarantees, are excluded from the scope of Topic 606.
9. Reinstate the guidance on the accrual of advertising expenses in paragraph 340-20-25-2.
10. Remove the reference to "contract liability" in Example 40, Receivable Recognized for the Entity's Performance, in Topic 606.
11. Amend Example 38, Case B, Contract Liability and Receivable—Noncancellable Contract, in Topic 606 to improve the alignment of the example with the presentation guidance in paragraph 606-10-45-4.