Highlights of the FASB’s December 11 Meeting
December 13, 2019
At its December 11, 2019, meeting, the FASB discussed (1) distinguishing liabilities from
equity (including convertible debt), (2) segment reporting, and (3) financial
performance reporting — disaggregation of performance information.
Distinguishing Liabilities From Equity (Including Convertible Debt)
The Board discussed comments received on its July 2019 proposed Accounting
Standards Update (ASU)Accounting for Convertible Instruments and Contracts in
an Entity’s Own Equity and affirmed several decisions. In addition, the
Board directed its staff to “continue developing a remote likelihood threshold
for purposes of determining the classification of a contract in an entity’s own
equity when applying the derivatives scope exception.”
For more information, see the tentative Board decisions on the
FASB’s Web site.
Segment Reporting
The Board discussed feedback received from preparers regarding its 2019 study on
segment disclosures. On the basis of this feedback, the Board directed its staff to
(1) seek input from investors on potential improvements to the segment disclosure
requirements and (2) accelerate work on clarifying requirements related to public
entities’ disclosure of total assets by reportable segment.
For more information, see the tentative Board decisions on the FASB’s
Web site.
Financial Performance Reporting — Disaggregation of Performance Information
The Board discussed feedback received from preparers on an “internal view approach to
disaggregating income statement expense information.” The Board directed its staff
to “pause research on the project to monitor the progression of the segment
reporting project and the IASB’s primary financial statements project.”
For more information, see the tentative Board decisions on the FASB’s
Web site.