FASB Discusses Projects on Nonmonetary Assets and Conceptual Framework
February 18, 2021
At its February 17, 2021, meeting, the FASB discussed its projects on the following topics:
- Accounting by a joint venture for nonmonetary assets contributed by investors — The Board tentatively decided to require that a (1) “joint venture formed after the effective date of the new guidance apply the measurement and recognition guidance upon formation prospectively” while an “existing joint venture entity would have an option to apply the new guidance retrospectively” and (2) “joint venture upon formation measure its net assets (including goodwill) using the fair value of the joint venture as a whole.” In addition, the Board directed its staff to conduct additional research related to equity method basis differences, the measurement period of a joint venture, and disclosure requirements for a joint venture upon formation.
- Conceptual framework — elements — The Board discussed feedback on its proposed Statement of Financial Accounting Concepts, Concepts Statement No. 8 — Conceptual Framework for Financial Reporting — Chapter 4: Elements of Financial Statements, and will begin redeliberations at a future meeting.