FASB Holds March 29 Meeting
March 31, 2023
At its March 29, 2023, meeting, the FASB discussed its projects on the following topics:
- Conceptual framework: the reporting entity — The Board made tentative decisions regarding (1) features of a reporting entity, (2) consolidated financial statements, (3) parent-only financial statements, (4) portion of a larger entity, and (5) combined financial statements. The Board directed its staff to begin drafting a final chapter (Chapter 2, “The Reporting Entity”) of Concepts Statement 8 for a vote by written ballot.
- Disaggregation of income statement expenses — The Board made tentative decisions related to (1) inventory costs; (2) application of the selling-expenses disclosure requirements to nonbusiness entities; (3) disclosure of certain natural expenses; (4) amortization, depreciation, and depletion; (5) disclosures for interim reporting periods; (6) disaggregation requirements; (7) transition; and (8) expected costs and benefits. The Board directed its staff to draft a proposed Accounting Standards Update (ASU) for a 90-day comment period.
- Financial instruments — credit losses (ASC 326) — acquired financial assets — The Board continued deliberating the accounting for acquired financial assets within the scope of ASU 2016-13 (the “credit losses standard”) and tentatively decided “not to change the presentation of purchased financial assets with credit deterioration [PCD].” In addition, the Board tentatively decided to require that entities use a “modified retrospective transition method [so that] the expanded PCD scope would be applied retrospectively to the date an entity adopted the amendments” in ASU 2016-13.
For more information, see the meeting handout on the FASB’s Web site.