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.

1. Master Glossary Term Expected Losses and Expected Residual Returns. The Board decided to supersede that compound Master Glossary term and to (a) reset links in paragraphs 810-10-25-21 and 810-10-55-17 to the individual Master Glossary terms for expected losses and expected residual returns and (b) link the term expected losses in paragraph 810-10-55-42 to the Master Glossary term expected losses.
2. Master Glossary Term Financial Instrument. The Board decided to replace the wording that the financial instrument is an asset or liability set forth in FASB Concepts Statement No. 6, Elements of Financial Statements, with wording stating that the financial instrument meets the criterion to be recognized as an asset or liability under applicable GAAP.
3. Master Glossary Term Transaction. The Board decided to remove the Master Glossary term transaction and add internal cost allocations to the list of items specifically ineligible for designation as a hedge in paragraph 815-20-25-43.
4. Master Glossary Term Cash Balance Plan. The Board decided to move the specific example language from the Master Glossary term cash balance plan to implementation guidance and the remaining generic description of cash balance plans, which includes the guidance that cash balance plans are defined benefit plans, to the Recognition Section 25 of Subtopic 715-20 on defined benefit plans. This would result in removing the term from the Master Glossary.

Proposed Amendments to Update 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities

1. For entities that have not adopted the amendments in Update 2017-08, the effective date and transition requirements of the proposed amendments would align with those of Update 2017-08.
2. For entities that have adopted the amendments in Update 2017-08, the proposed amendments would be effective upon issuance of a final Accounting Standards Update.
3. For entities that have adopted the amendments in Update 2017-08, the proposed amendments would be applied on a modified retrospective basis by means of a cumulative-effect adjustment to opening retained earnings in the statement of financial position as of the beginning of the first reporting period for which the proposed amendments would have been effective.

Additional Considerations

The Board also directed the staff to ask a question in the proposed Accounting Standards Update on whether entities that have adopted Update 2017-08 would have sufficient time to adopt the proposed amendments.

Proposed Amendments to Update 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

1. For entities that have not adopted the amendments in Update 2016-13, the effective date and transition requirements of the proposed amendments would align with those of Update 2016-13.
2. For entities that have adopted the amendments in Update 2016-13, the proposed amendments would be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.
3. Early adoption would be permitted if an entity has already adopted the amendments in Update 2016-13.
4. For entities that have adopted the amendments in Update 2016-13, the proposed amendments would be applied on a modified retrospective basis by means of a cumulative-effect adjustment to opening retained earnings in the statement of financial position as of the date an entity adopted the amendments in Update 2016-13.