FASB Holds January 15 Meeting

At its January 15, 2025, meeting, the FASB discussed comments received on its proposed Accounting Standards Update (ASU) Derivatives Scope Refinements and Scope Clarification for a Share-Based Payment From a Customer in a Revenue Contract. With respect to the first issue (derivatives scope refinements), the Board directed the staff to perform additional analysis and research related to (1) the proposed scope exception and (2) predominant characteristics assessment. Regarding the second issue (scope clarification related to share-based payment from a customer in a revenue arrangement), the Board decided that the issue’s current scope should be retained; accordingly, the Board intends “to clarify the applicability of Topic 606 and other Topics for a share-based payment from a customer that is consideration for the transfer of goods or services.”

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