FASB Holds August 26 Meeting
August 28, 2020
At its August 26, 2020, meeting, the FASB discussed its projects on the following topics:
- Distinguishing liabilities from equity (phase 2) — The Board began deliberating this project by discussing its direction, objective, and scope. The Board intends to “improve and align the two existing indexation models used to evaluate financial instruments with characteristics of equity by developing an indexation principle to reduce inconsistencies across GAAP.”
- Codification improvements — The Board discussed the amendments in its proposed ASU Codification Improvements and made several decisions. It also discussed the final ASU’s effective date and transition guidance and concluded that the expected benefits of the amendments would justify the costs. The Board directed its staff to begin drafting a final ASU for a vote by written ballot.