Disclosure
framework: disclosure review—income taxes. The Board
continued redeliberations of its July 2016 proposed Accounting Standards Update,
Income Taxes (Topic 740): Disclosure Framework—Changes to the Disclosure
Requirements for Income Taxes. The Board discussed external review comments
on a draft of a revised proposed Update, including whether tax expense and taxes
paid on foreign earnings that are imposed by the country of domicile of the
entity should be classified as a foreign or domestic amount.
The
Board decided not to require that an entity disclose the amount of the
transition tax liability resulting from the Tax Cuts and Jobs Act and the line
item in the statement of financial position in which the liability is presented.
The Board also decided not to require that an entity
disclose a description of a legally enforceable agreement with a government,
including the duration of the agreement, the commitments made with the
government under that agreement, and the amount of benefit that reduces or may
reduce its income tax burden.
Next Steps The
Board directed the staff to perform outreach on the operability and benefits of
classifying tax expense and taxes paid on foreign earnings that are imposed by
the country of domicile of the entity as a foreign or domestic
amount.
Simplifying
the balance sheet classification of debt. The Board continued
redeliberations of the proposed Accounting Standards Update,
Debt (Topic
470): Simplifying the Classification of Debt in a Classified Balance Sheet
(Current versus Noncurrent).
The Board directed the staff to continue its research on a potential
alternative that considers the contractual linkage between certain debt
arrangements and unused long-term financing arrangements in place at the balance
sheet date. That research would consider the underlying economics of and the
markets for those arrangements and illustrative examples related to unused
long-term financing arrangements.
Financial
instruments—credit losses—targeted transition
relief. The Board decided to exclude debt securities
classified as held-to-maturity from the scope of a proposed Accounting Standards
Update that would address targeted transition relief for Topic 326, Financial
Instruments—Credit Losses.
Analysis of Costs and Benefits
The Board concluded that it has received sufficient information and
analysis to make an informed decision and that the expected benefits of the
proposed amendments would justify the expected costs.
Next Steps
The Board directed the staff to draft a proposed Accounting Standards
Update for vote by written ballot with a 30-day comment
period.