Appendix G — Roadmap Updates for 2024

Accounting for Costs Incurred on Behalf of, and Subsequently Reimbursed by, an Investee in the Financial Statements of the Investor

Addresses an investor’s accounting for costs incurred on behalf of, and subsequently reimbursed by, an investee.

Transfer of Financial Assets

Discusses the joint venture’s accounting in situations in which a venturer transfers financial assets within the scope of ASC 860-10 to the joint venture.

Determining Whether to Apply the Proportional Amortization Method to Investments in Tax Credit Structures

Summarizes differences between U.S. GAAP and IFRS Accounting Standards with respect to application of the proportionate amortization method.

Adds table summarizing the effects of changes in ownership or level of influence as well as related impacts on the investor’s accounting.

Proportionate Consolidation Method

Clarifies that an entity’s determination of whether to apply the proportionate consolidation method to an LLC in the construction or extraction industries depends on whether the LLC is more akin to a partnership or corporation.

Intra-Entity Profits and Losses

Includes new Example 5-12 to illustrate an investor’s accounting for intra-entity service transactions. Renumbered subsequent examples.

Equity Method Losses That Exceed the Investor’s Equity Method Investment Carrying Amount

Provides new Example 5-26 to illustrate the accounting by an investor that has committed cash to an investee and that has equity method losses exceeding the carrying amount of the investor’s equity method investment.

Consideration of Cumulative Translation Adjustment in an Impairment Analysis

Updates Example 5-31 (formerly Example 5-29) to clarify how an investor should determine whether it has committed to a plan to dispose of its equity method investment.

Interest on In-Substance Capital Contributions

Adds discussion of “rated feeder” fund structures in the U.S. insurance industry.

7.2.7

Reassessment of the Joint Venture Determination

Section deleted.

Determining Whether to Apply the Equity Method of Accounting

Clarifies, in the “Initial measurement: acquisition-date excess of investor’s share” row of the table, differences between U.S. GAAP and IFRS Accounting Standards regarding the potential recognition of a day 0 gain when the investor’s share of the fair value of the investee’s net assets exceeds the consideration paid to acquire the investment.

C.3.3 and D.3.3

Substantially All of the Projected Benefits

Clarifies that income tax credits and other benefits should be considered net of income tax expenses in the determination of whether substantially all of an investment’s projected benefits are derived from income tax credits and other tax benefits.