Highlights of the FASB’s June 19 Meeting
June 20, 2019
At its June 19, 2019, meeting, the FASB discussed (1) reference rate reform, (2) distinguishing liabilities from equity, and (3) the conceptual framework (elements and measurement).
Reference Rate Reform
The FASB discussed accounting relief for companies required to modify contracts as a result of new global reference rates. The Board tentatively decided that “for a contract that meets certain criteria, a change in that contract’s reference interest rate would be accounted for as a continuation of that contract rather than the creation of a new contract.”
For more information, see the press release and meeting minutes on the FASB’s Web site.
Distinguishing Liabilities From Equity (Including Convertible Debt)
The Board made tentative decisions related to the scope of the guidance in ASC 815-40-50, disclosure frequency, calculation of the diluted earnings per share denominator, classification of a detachable stock purchase warrant, the remote threshold, and penalty payments. The FASB directed its staff to begin drafting a proposed ASU for a vote by written ballot.
For more information, see the meeting minutes on the FASB’s Web site.
Conceptual Framework — Elements
The Board made tentative decisions related to the definition of an asset.
For more information, see the meeting minutes on the FASB’s Web site.
Conceptual Framework — Measurement
The Board discussed an approach to its project on developing a chapter on measurement in FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting.
For more information, see the meeting minutes on the FASB’s Web site.