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, November 9,
2016 FASB Board Meeting
Clarifying
the definition of a business. The Board decided that early application of
the amendments would be allowed for transactions occurring before the issuance
date of the forthcoming Accounting Standards Update, only when the interim or
annual financial statements of the reporting period that contains the
transaction have not been issued or made available for
issuance.
Analysis of Benefits and Costs
The Board
concluded that all relevant issues have been deliberated and that it has
received sufficient information and analysis on the amendments to the guidance
to make an informed decision on the issues presented. The Board also concluded
that the expected benefits of the amendments justify the
costs.
Permission to Ballot
The Board directed the staff
to draft a final Accounting Standards Update for vote by written ballot.
Clarifying
when a not-for-profit entity that is a general partner should consolidate a
for-profit limited partnership (or similar entity). The Board discussed
comment letter feedback and affirmed its decision to reinstate the consolidation
guidance that previously existed in Subtopic 810-20, Consolidation—Control of
Partnerships and Similar Entities, by including it in Subtopic 958-810,
Not-for-Profit Entities—Consolidation.
Transition and Transition
Disclosures
The Board decided that entities that have already
adopted the amendments in Accounting Standards Update 2015-02, Consolidation
(Topic 810): Amendments to the Consolidation Analysis, will be required to
apply the amendments in the final Update retrospectively to all relevant prior
periods beginning with the fiscal year in which the amendments in Update 2015-02
initially were adopted. Entities that have not yet adopted Update 2015-02 will
be required to apply the same transition method elected for the application of
Update 2015-02. The Board additionally affirmed the proposed transition
disclosures.
Effective Date
The Board decided that the
guidance in the forthcoming final Update will be effective for all
not-for-profit entities for fiscal years beginning after December 15, 2016, and
interim periods within fiscal years beginning after December 15, 2017. The Board
also decided that not-for-profit entities that have not yet adopted the
amendments in Update 2015-02 will be required to adopt the amendments in the
forthcoming final Update at the same time they adopt the amendments in Update
2015-02. The Board also decided that early adoption will be
permitted.
Costs, Benefits, and Complexity
The Board
decided that the benefits of the final Update will justify the perceived costs.
Next Steps
The Board directed the staff to draft a final
Accounting Standards Update for vote by written
ballot.