See FASB Staff Educational Paper Intersection of Environmental, Social, and Governance Matters With Financial Accounting Standards, issued on March 19, 2021; SEC’s interpretive release Commission Guidance Regarding Disclosure Related to Climate Change (the “2010 interpretive release”), issued on February 8, 2010, and request for input, Public Input Welcomed on Climate Change Disclosures, issued on March 15, 2021; and CAQ White Paper Audited Financial Statements and Climate-Related Risk Considerations, issued on September 9, 2021.
See ASC 360-10-35-21 for examples of events or changes in circumstances that may indicate a long-lived asset (asset group) may not be recoverable. For titles of FASB Accounting Standards Codification (ASC) references, see Deloitte’s “Titles of Topics and Subtopics in the FASB Accounting Standards Codification.”
FASB Concepts Statement No. 6, Elements of Financial Statements.
Although the FASB is planning to update its Concepts Statements in the fourth quarter of 2021, we understand that these general characteristics for identifying a liability will remain largely similar.
See ASC 410-20-20, which cites the definition of promissory estoppel that is used in Black’s Law Dictionary, seventh edition.
See paragraphs 202 and 203 of FASB Concepts Statement 6.
FASB Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842).
FASB Accounting Standards Update No. 2017-04, Simplifying the Test for Goodwill Impairment.
The FASB currently has a project underway to revisit subsequent accounting for goodwill and the accounting for certain identifiable intangible assets for all entities, which includes consideration of amortizing goodwill and certain identifiable intangible assets. For more information, see the related project update page on the FASB’s Web site.
SEC Staff Accounting Bulletin (SAB) Topic 5.Y, “Accounting and Disclosures Related to Loss Contingencies.”
Note that this discussion assumes that the debt is not measured at fair value on a recurring basis (e.g., the issuer has not elected the fair value option in ASC 815-15-24-4 or ASC 825-10). In addition, an entity should always consider the terms and conditions of a specific feature in light of the applicable accounting guidance before reaching a conclusion.