FASB Holds April 5 Meeting
April 6, 2023
At its April 5, 2023, meeting, the FASB discussed its projects on the following topics:
Joint venture formations — The Board discussed (1) the formation date for joint ventures, (2) a new basis of accounting upon formation, (3) the parts of the joint venture formation, (4) the scope of the amendments, (5) transition and effective date, and (6) cost-benefit analysis. The Board directed its staff to draft an ASU for a vote by written ballot.
Accounting for and disclosure of software costs — The Board discussed stakeholder feedback it received on potential recognition and measurement models related to accounting for software costs. On the basis of this feedback, the Board directed its staff to continue its research on one of its two proposed models — the single model (or “initial development cost model”) — which would require entities to “capitalize all direct software costs from the point at which it is probable that the software project will be completed and the software will be used to perform the function intended.”
For more information, see the meeting handout on the FASB’s Web site.