Deloitte
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2025

March 2025

EITF Snapshot
March 2025
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Summary of the March Meeting of the Emerging Issues Task Force

This EITF Snapshot summarizes the March 25, 2025, meeting of the Emerging Issues Task Force (EITF or “Task Force”). Initial Task Force recommendations are summarized by the Financial Accounting Standards Board (FASB or “Board”) staff in an agenda decision memo for the Board’s discussion at a public meeting. On the basis of such discussion, the Board determines whether to add a project to the FASB’s technical agenda and votes on all substantive decisions (including a cost-benefit analysis). The Board then directs the staff to draft a proposed Accounting Standards Update (ASU) for a vote by written ballot. These decisions are expected to be made at a single meeting. After the FASB approves the draft proposed ASU, it is exposed for public comment. When the comment period ends, the FASB considers the comments received; redeliberates the issues at a public Board meeting; and, ultimately, issues a final ASU.

Footnotes

1
For some preferred stock instruments with cumulative stated dividends, declared but unpaid dividends accrue to the liquidation preference of the preferred stock; for others, however, cumulative stated dividends accrue to the liquidation preference regardless of whether they are declared. For this reason, PIK dividends that would accrue to the liquidation preference of preferred stock are distinct from those that are simply cumulative dividends.
2
During deliberations, EITF members also clarified that the unit of account for applying the transition guidance should be at the dividend level rather than at the level of the preferred stock instrument.