Highlights of the FASB’s April 3 Meeting
April 4, 2019
At its April 3, 2019, meeting, the FASB discussed (1) implementation issues related to credit losses and (2) distinguishing liabilities from equity (including convertible debt).
Financial Instruments — Implementation Issues Related to Credit Losses
The Board decided not to add a project to “explore modifying the accounting for expected credit losses by requiring that an entity bifurcate expected credit losses in net income and other comprehensive income.” In addition, the Board decided that an “entity is not required to disclose gross writeoffs and gross recoveries by vintage.”
For more information, see the meeting minutes on the FASB’s Web site.
Distinguishing Liabilities From Equity (Including Convertible Debt)
The Board made tentative decisions related to convertible instruments, the derivatives scope exception for contracts on an entity’s own equity, other consequential amendments, and transition. In addition, the Board directed the staff to draft a proposed Accounting Standards Update for external review.
For more information, see the meeting minutes on the FASB’s Web site.