FASB Holds March 27 Meeting

At its March 27, 2024, meeting, the FASB discussed its projects on (1) disaggregation — income statement expenses and (2) accounting for environmental credit programs.

The Board continued deliberating its proposed Accounting Standards Update (ASU) Disaggregation of Income Statement Expenses. Specific topics addressed included the following:

• Expense captions subject to the disaggregation requirements.
• Required expense categories, excluding inventory and manufacturing expense.
• Selling expenses.
• Integration of existing disclosures without mapping requirements.

For more information, see the tentative Board decisions on the FASB’s Web site.

Topics discussed included the following:

• Accounting policy election related to remeasurement of certain noncompliance environmental credit assets at fair value.
• Recognition and measurement of environmental credits acquired and environmental credit obligations assumed in a business combination.
• Purchase commitments and nonrefundable deposits related to environmental credits.

In addition, the Board directed its staff to “conduct additional research on which noncompliance environmental credit assets should be eligible for the fair value election, including those obtained through transactions with related parties.”

For more information, see the tentative Board decisions on the FASB’s Web site.