At its February 13, 2019, meeting, the FASB discussed its projects on (1) distinguishing liabilities from equity, (2) segment reporting, and (3) codification improvements related to leases.
Distinguishing Liabilities From Equity (Including Convertible Debt)
The Board made tentative decisions related to the application of the derivatives scope exception to contracts on an entity’s own equity, earnings per share for convertible instruments, and disclosures.
The Board discussed “an analysis of options to potentially improve how the management approach applies to the segment disclosure requirements” and directed its staff to “study how clarifying the meaning of regularly reviewed segment information would affect the pieces of information public entities report by segment.”
The Board completed redeliberations of its proposed ASU Codification Improvements for Lessors. It made decisions related to several issues, including (1) determining the fair value of an underlying asset if a lessor is not a manufacturer or dealer and (2) the presentation in the statement of cash flows of sales-type and direct financing leases by lessors that are within the scope of ASC 942. The Board directed its staff to draft a final ASU for a vote by written ballot.
In addition, the Board deliberated certain issues unrelated to the proposed ASU that were raised in comment letters. It decided to clarify that entities that adopt ASC 842 do not need to provide the interim-period disclosures required by ASC 250-10-50-3.