Highlights of the FASB’s July 31 Meeting
August 2, 2019
At its July 31, 2019, meeting, the FASB discussed (1) share-based consideration payable to a customer, (2) measurement and other topics related to revenue contracts with customers under ASC 805, (3) balance sheet classification of debt, and (4) hedge accounting.
Codification Improvements — Share-Based Consideration Payable to a Customer
The Board discussed feedback on its proposed Accounting Standards Update (ASU), Codification Improvements — Share-Based Consideration Payable to a Customer, and reaffirmed its decision to require entities to measure and classify share-based consideration payable to a customer by applying the guidance in ASC 718. The Board directed its staff to begin drafting a final ASU for a vote by written ballot.
For more information, see Deloitte related journal entry as well as the meeting minutes on the FASB’s Web site.
Measurement and Other Topics Related to Revenue Contracts With Customers Under ASC 805
The Board discussed feedback on its Invitation to Comment, Measurement and Other Topics Related to Revenue Contracts With Customers Under Topic 805, and EITF Issue No. 18-A, “Recognition Under Topic 805 for an Assumed Liability in a Revenue Contract.” The Board tentatively decided to “subsume Issue 18-A . . . into the Board’s research project on measurement and other topics related to revenue contracts in a business combination.” It also tentatively decided “not to eliminate any of the potential alternatives identified by the staff on measurement and other topics related to an assumed liability from a revenue contract in a business combination.”
Simplifying the Balance Sheet Classification of Debt
The Board discussed its proposed ASU, Simplifying the Classification of Debt in a Classified Balance Sheet (Current Versus Noncurrent), and made tentative decisions related to the debt classification principle, variable-rate demand obligations with remarketing agreements, grace-period disclosures, and the definition of “current liabilities.”
Codification Improvements — Hedge Accounting
The Board discussed its proposed ASU on Codification improvements to hedge accounting and made tentative decisions related to hedged risk in a cash flow hedge, contractually specified components, private-company considerations, and the effective date of the proposed amendments. The Board directed its staff to draft a proposed ASU with a 60-day comment period for a vote by written ballot.