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.
Wednesday, March 9, 2016
FASB Board Meeting
Topic 606 pre-agenda research. The
Board discussed certain aspects of the disclosure requirements for remaining
performance obligations. The Board decided to add a practical expedient to the
requirement to disclose remaining performance obligations for certain types of
variable consideration. The Board also decided to make improvements to the
qualitative disclosure requirement for remaining performance obligations (in
paragraph 606-10-50-15).
An entity applying the practical expedient would
not need to include the following types of variable consideration in the
disclosure of remaining performance obligations (paragraph 606-10-50-13):
- Sales-based or usage-based royalties promised in exchange for a license of
intellectual property
- Variable consideration that is allocated entirely to a wholly unsatisfied
performance obligation or to a distinct good or service that forms part of a
single performance obligation and meets the criteria in paragraph
606-10-32-40.
Next Steps
The Board had previously
directed the staff to draft a proposed Accounting Standards Update for vote by
written ballot on technical corrections and improvements related to Accounting
Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic
606). The Board instructed the staff to include these proposed amendments
in that proposed Update.