Tentative Board Decisions
Tentative Board decisions are provided for those interested in
following the Board´s deliberations. All of the reported decisions are
tentative and may be changed at future Board meetings.
March 4, 2015 FASB Board Meeting
Disclosure Framework: Disclosure Review—Fair Value Measurement.
The Board discussed potential changes to disclosure requirements for
Topic 820, Fair Value Measurement, and made the following decisions to:
- Remove the following existing disclosure requirements:
- The policy for timing of transfers between levels
- The internal valuation processes for Level 3 fair value measurements
- The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy
- For private companies, the change in unrealized gains and
losses for the period included in earnings (or changes in net assets)
related to recurring Level 3 fair value measurements held at the end of
the reporting period.
- Modify the following existing disclosure requirements:
- For private companies, no longer require a reconciliation of
the opening balances to the closing balances of recurring Level 3 fair
value measurements. However, those companies would be required to
disclose transfers in and out of Level 3 of the fair value hierarchy and
purchases of Level 3 assets.
- For investments in certain entities that calculate net asset
value, require disclosure of the estimated timing of liquidation of an
investee´s assets and the date when restrictions from redemption might
lapse only if the investee has communicated that information to the
reporting entity, either directly or indirectly.
- Add the following disclosure requirement:
- The changes in unrealized gains and losses for the period
included in other comprehensive income and earnings (or changes in net
assets) for recurring Level 1, Level 2, and Level 3 fair value
measurements held at the end of the reporting period. This addition
would not apply to private companies.
Financial Statements of Not-for-Profit Entities. The Board continued its discussions from the February 25, 2015 meeting on the proposed Accounting Standards Update, Not-for-Profit
Entities (Topic 958) and Health Care Entities (Topic 954)—Presentation
of Financial Statements of Not-for-Profit Entities.
The Board decided that the overall expected benefits of the proposed
financial reporting changes justify the perceived costs of preparing and
using the information, subject to consideration of other input and
information received through public exposure and related outreach. The
Board also considered input received at the March 3, 2015 Not-for-Profit
Advisory Committee meeting and decided to include a question in the
forthcoming Exposure Draft to seek input on the presentation of equity
Additionally, the Board directed the staff to proceed with drafting the
Exposure Draft of the proposed Accounting Standards Update for vote by
written ballot. The Board expects to issue an Exposure Draft for public
comment by mid-April.