FASB Holds November 20 Meeting

At its November 20, 2024, meeting, the FASB added a project on accounting for debt exchanges to its agenda. Specifically, the project will address “when a transaction with multiple creditors that involves the contemporaneous exchange of cash between the same debtor and creditor in connection with the issuance of a new debt obligation and satisfaction of an existing debt obligation by the debtor (a ‘debt exchange transaction’) should be accounted for as a debt extinguishment and the issuance of new debt.” The Board has directed its staff to draft a proposed Accounting Standards Update (ASU) related to this project for a vote by written ballot.

In addition, the Board decided that the interim effective date of ASU 2024-03, Disaggregation of Income Statement Expenses, should be clarified “for public business entities that do not have an annual reporting period.” The Board has directed the staff to draft a proposed ASU for a vote by written ballot.

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