FASB Holds October 13 Meeting
October 15, 2021
At its October 13, 2021, meeting, the FASB discussed its projects on the following topics:
- Segment reporting — The Board made tentative decisions about the easily computable concept, mapping of entity-wide amounts to the income statement lines, single reportable segment entities, and the next steps in its deliberations related to the project.
- Conceptual framework — measurement — The Board discussed the staff’s approach to developing a proposed chapter on measurement for Concepts Statement No. 8, Conceptual Framework for Financial Reporting. The FASB did not make any tentative decisions at this meeting.
- Joint venture formations — The Board made tentative decisions to (1) “prohibit a joint venture from applying the measurement period guidance in accordance with Subtopic 805-10 to the amounts recognized upon formation” and (2) “require a joint venture to disclose [certain] information in the period of formation to enable users of its financial statements to evaluate the nature and financial effect of the joint venture formation.” The Board directed the staff to begin drafting a proposed Accounting Standards Update (ASU) and complete an external review.
- Codification improvements to credit losses — The Board tentatively decided “to require an entity to disclose current-year gross writeoffs, but not recoveries, by year of origination within its vintage disclosure” and apply a prospective transition approach. The Board directed the staff to begin drafting a proposed ASU for a vote by written ballot.
- Targeted improvements — accounting for troubled debt restructuring (TDR) for
creditors — The Board tentatively decided to:
- Eliminate the “TDR recognition and measurement guidance . . . for creditors that have adopted the amendments in Update 2016-13.”
- Require “creditors to enhance their disclosures related to modifications made to borrowers experiencing financial difficulty.”
- Exclude “modifications that only represent an insignificant delay in payment from the enhanced disclosure requirements for modifications made to borrowers experiencing financial difficulty.”
- Require prospective transition for (1) “the amendments related to recognition and measurement, with an option to elect a modified retrospective transition approach (a cumulative-effect adjustment to opening retained earnings as of the date of adoption of the forthcoming amendments)” and (2) “the disclosure enhancements related to modifications made to borrowers experiencing financial difficulty.”
The Board directed the staff to begin drafting a proposed ASU for a vote by written ballot.