FASB Holds August 19 Meeting

At its August 19, 2026, meeting, the FASB discussed (1) consideration payable to a customer under ASC 606, (2) feedback received on revenue issues as part of its January 2025 agenda consultation, and (3) its project on crypto asset transfers.

The FASB added to its technical agenda a project (based on an EITF Issue) on “when payments made on behalf of a customer, or to a customer of an entity’s customer, should be accounted for as consideration payable to a customer” under the revenue recognition guidance in ASC 606. The Board agreed with the EITF that, when specified conditions are met, such payments would be accounted for as consideration payable to a customer under ASC 606. In addition, the Board affirmed that the guidance would apply to, and be required for, all entities. The Board also decided that examples illustrating the accounting for these payments would be added to ASC 606-10-55 and that either a modified prospective or a modified retrospective transition approach would be used to apply the amendments.

The Board has directed its staff to draft a proposed Accounting Standards Update (ASU) on this topic for a vote by written ballot. For more information, see the tentative Board decisions and Board meeting handout on the FASB’s Web site.

The Board discussed two revenue-related topics on which it received feedback as part of its January 2025 agenda consultation: (1) negative revenue from consideration payable to a customer and (2) customer identification and capitalization of interest costs with respect to service concession arrangements within the scope of ASC 853. However, the Board decided that neither of these topics would be added to its technical agenda at this time.

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

The Board continued deliberating its project on crypto asset transfers. Tentative decisions made by the Board at this meeting included the following:

• Crypto asset lending transactions would not be subject to the control guidance in ASC 606 but would be addressed by other guidance.
• ASC 606 would apply to all other crypto asset transfers, and “the evaluation of whether control of crypto assets has transferred may be assessed primarily from the perspective of the transferring entity rather than the counterparty.”
• A digital asset transfer would be accounted for under ASC 860 provided that it qualifies as a financial asset and is within that topic’s scope.
• Certain clarifications would be made to the disclosure requirements in ASC 350-60, including those related to (1) crypto asset holdings, (2) crypto assets subject to contractual sale restrictions, and (3) additions and dispositions related to crypto asset activity.
• A modified transition approach would be used to apply the amendments, and early adoption would be permitted in interim or annual reporting periods.

The Board has directed its staff to draft a proposed ASU on this topic for a vote by written ballot. For more information, see the tentative Board decisions and Board meeting handout on the FASB’s Web site.