FASB Holds June 17 Meeting

At its June 17, 2026, meeting, the FASB discussed its project on how investment companies within the scope of ASC 946 should measure the fair value of equity securities that are subject to contractual sale restrictions. The Board’s tentative decisions included the following:

• The unit of account for a contractual sale restriction would be the same as that for the related equity security.
• The discount associated with a contractual sale restriction would need to be disclosed in the financial statement notes.
• The term “contractual sale restriction” would not be defined.
• The requirements would not apply to investment assets other than equity securities.
• The guidance would be effective prospectively, and early adoption would be permitted.

The staff has been directed to draft a proposed ASU for a vote by written ballot.

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