At its June 19, 2019, meeting, the FASB discussed (1) reference rate reform, (2) distinguishing liabilities from equity, and (3) the conceptual framework (elements and measurement).
Reference Rate Reform
The FASB discussed accounting relief for companies required to modify contracts as a result of new global reference rates. The Board tentatively decided that “for a contract that meets certain criteria, a change in that contract’s reference interest rate would be accounted for as a continuation of that contract rather than the creation of a new contract.”
Distinguishing Liabilities From Equity (Including Convertible Debt)
The Board made tentative decisions related to the scope of the guidance in ASC 815-40-50, disclosure frequency, calculation of the diluted earnings per share denominator, classification of a detachable stock purchase warrant, the remote threshold, and penalty payments. The FASB directed its staff to begin drafting a proposed ASU for a vote by written ballot.