FASB Holds July 29 Meeting
July 29, 2020
At its July 29, 2020, meeting, the FASB discussed potential projects
to add to its technical agenda as well as the upcoming plans for its
postimplementation review (PIR) process for the leasing, credit losses, and revenue
standards.
Agenda Prioritization
The FASB tentatively decided to add projects on the following topics to its
technical agenda:
- Targeted improvements to leases. This project will address (1) sales-type leases with substantial variable lease payments, (2) remeasurement of lease payments based on a reference index or rate, and (3) reduction of scope in a lease contract. The FASB directed its staff to draft a proposed Accounting Standards Update (ASU) for a vote by written ballot.
- Effects of underwriter restrictions and other types of sale restrictions on fair value measurements.
PIR Board Update
The FASB staff gave an update on its PIR activity related to the
Board’s standards on leases, credit losses, and revenue. Specific actions the
Board has taken include the following:
- Leases — The FASB tentatively decided to add several issues to its agenda as part of a project to make targeted improvements to ASC 842. The Board has also announced that it will be holding a virtual roundtable on September 18, 2020, to “discuss broad implementation issues, including those that would apply to private companies, to determine whether the Board needs to take further action.”
- Credit losses — The FASB has reached out to various stakeholders and issued five ASUs that are intended to enhance the guidance in ASC 326. The Board has also deferred the effective date of ASC 326 for public business entities that meet certain conditions.
- Revenue — The FASB has issued ASUs to defer the effective date of ASC 606 as well as to “clarify or simplify the standard.”
For more information about all of the discussions held at the meeting, see the
tentative Board decisions on the FASB’s Web site.