FASB Holds September 3 Meeting

At its September 3, 2025, meeting, the FASB discussed feedback received on its proposed Accounting Standards Update (ASU) Accounting for Debt Exchanges. In addition to making certain clarifications, the Board decided to affirm several aspects of the conditions related to the determination of “whether a contemporaneous exchange of debt instruments is accounted for as the issuance of a new debt obligation and an extinguishment of the existing debt obligation.” The Board also affirmed that the amendments would be applied prospectively; early adoption would be permitted; and the standard’s effective date for all entities would be December 15, 2026. The staff has been directed to draft a final ASU for a vote by written ballot.

Further, the Board discussed its postimplementation review project related to the leasing guidance in ASC 842, but no decisions were made.

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