Investor Advisory Committee Meeting Recap
May 14, 2019
The Investor Advisory Committee (IAC) met on May 14, 2019. At the meeting, the FASB staff delivered updates and IAC members provided input on the following FASB topics:
The next IAC meeting will be held on November 12, 2019. For more information on the IAC, please visit the FASB website.
- IAC Emerging Issues and Trends: IAC members discussed their observations on the implementation of the revenue recognition standard (Topic 606, Revenue from Contracts with Customers) and leasing
standard (Topic 842, Leases). Consistent with prior IAC meetings,
members also reiterated the recommendation for additional transparency
of information on a geographical basis.
- Disclosures by Business Entities about Government Assistance:
IAC members discussed whether the benefits of disclosures by business
entities about government assistance justify the costs of providing that
information. Members noted that the usefulness of this disclosure may
depend on the industry in which an entity operates. However, most
members agreed that for entities that receive government assistance,
disclosures about government assistance—specifically relating to its
recurrence—would be considered useful financial information to
investors. Members also discussed considerations and concerns relating
to the scope of the guidance in proposed Accounting Standards Update, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance.
- Segment Reporting:
IAC members discussed different approaches for providing additional
disclosures about each reportable segment. Members generally supported
requiring additional information by segment but expressed concerns that
any approach could have unintended consequences on the information
reported. Some members observed that an approach utilizing
principles-based disclosure requirements could be useful, however,
members were concerned with the application of the management approach
more generally and how it is used for segment identification.
- Financial Instruments—Credit Losses,
Vintage Disclosures for Gross Write-Offs and Gross Recoveries: IAC
members discussed the Board's decision to not require disclosure of
gross write-offs and gross recoveries by vintage. Members indicated that
they anticipated receiving this type of vintage information as part of
the credit losses standard (Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326). Members also confirmed that gross write-offs and gross recoveries by vintage would be useful in their analyses.