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, June 26, 2019 FASB Board Meeting
Ratification of an EITF consensus-for-exposure. The Board
ratified the following consensus-for-exposure reached by the EITF at its
June 13, 2019 meeting and directed the staff to draft a proposed Update
reflecting the consensus-for-exposure for vote by written ballot.
Issue No. 19-A, "Financial Instruments—Clarifying the Interactions between Topic 321 and Topic 323"
The Task Force reached a consensus-for-exposure that an entity should
consider observable transactions that would require the investor to
either apply or discontinue the equity method of accounting for the
purposes of applying the measurement alternative under Topic 321,
Investments—Equity Securities, immediately before applying or upon
discontinuing the equity method under Topic 323, Investments—Equity
Method and Joint Ventures.
The Task Force reached a consensus-for-exposure that an entity should
not consider whether the equity security underlying the forward contract
or purchased option would, individually or with existing investments,
be accounted for under the equity method upon settlement of the forward
contract or exercise of the purchased option for purposes of evaluating
the characteristic in paragraph 815-10-15-141(a).
The Task Force reached a consensus-for-exposure that an entity should
apply the proposed amendments in the Update resulting from this Issue
prospectively. The Task Force also reached a consensus-for-exposure not
to require any recurring disclosures related to equity method
investments or equity securities that are accounted for under the
measurement alternative. In addition, the Task Force reached a
consensus-for-exposure that an entity should disclose in the period of
adoption the nature of and reasons for the change in accounting
principle, the transition method, and a qualitative description of the
financial statement line items affected by the change.
The Board decided to expose the proposed Update for public comment for 30 days.
Open discussion: Not-for-profit reporting of gifts-in-kind. The FASB chairman added a project to the research agenda on
the presentation, disclosure, and valuation of gift-in-kind
contributions, including donated pharmaceuticals. The staff is
planning to discuss the research with the Board in August, at which time
the Board will determine whether to add a project to the technical agenda and, if so, what the scope of the project would be.