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 6, 2019 FASB Board Meeting
Disclosure improvements in response to SEC Release on disclosure update and simplification.
The Board considered whether to add a project to its technical agenda
to address disclosures referred to the Board by the SEC and discussed
whether and how those referred SEC disclosure requirements should be
included in the Codification.
The Board decided to add a project to its technical agenda to address
disclosures referred to the Board as part of the SEC’s Disclosure Update
and Simplification initiative.
The Board decided to incorporate the following referred disclosures into
the Codification for all entities: foreign currency, derivative
accounting policies, technical correction for investment companies, real
estate investment trusts, consolidations, assets subject to liens,
preferred shares, repurchase and reverse repurchase agreements, earnings
per share in interim periods, changes in reporting entity in interim
periods, common control transactions in interim periods, products or
services, oil- and gas-producing activities, and debt.
The Board decided to incorporate the referred disclosure on intra-entity
profits and losses of related party transactions in separate financial
statements into the Codification for public business entities only.
The Board decided not to incorporate the following referred disclosures
into the Codification: equity compensation plans, discounts on shares,
major customers, authorized amount of debt, and financial statement
presentation of related party transactions.
Transition
The Board decided that an entity should apply the amendments
prospectively. The Board decided not to require any transition
disclosures.
Next Steps
The Board directed the staff to draft a proposed Accounting Standards
Update for vote by written ballot. The Board decided to provide a
comment period of either 45 days after issuance or June 28, 2019,
whichever is later.
Updating the definition of collections. The Board discussed the results of external review of the FASB Accounting Standards Update, Not-for-Profit Entities (Topic 958): Updating the Definition of Collections. The Board made the following decisions.
Scope
The Board decided to clarify in the final Update that the scope of the guidance on collections in Subtopics 958-360 and 958-605 includes both not-for-profit and business entities, consistent with the pre-Codification guidance in FASB Statement No. 116, Accounting for Contributions Received and Contributions Made.
Other Issues
The Board considered comments raised by external reviewers surrounding the accounting for the enhancement of collection items, the prospective application of the Update, and the scope of applicability of the new disclosure concerning how an entity defines the term direct care. The Board decided not to change the final Update in these areas.