SUMMARY OF BOARD DECISIONS
Summary of Board decisions are provided for the information and
convenience of constituents who want to follow the Board’s deliberations. All of
the conclusions reported are tentative and may be changed at future Board
meetings. Decisions are included in an Exposure Draft for formal comment only
after a formal written ballot. Decisions in an Exposure Draft may be (and often
are) changed in redeliberations based on information provided to the Board in
comment letters, at public roundtable discussions, and through other
communication channels. Decisions become final only after a formal written
ballot to issue an Accounting Standards Update.
November 6, 2012 FASB Board MeetingLiquidation
basis of accounting. The Board discussed a summary of the comments
received on Proposed Accounting Standards Update, Presentation of Financial
Statements (Topic 205): The Liquidation Basis of Accounting. The summary
will be published on the Liquidation Basis project page of the FASB
The Board also discussed a project plan for completing its
No decisions were made.
policy and procedures. In the November 3, 2011 Exposure Draft, the
Board proposed an analysis for both variable interest entities (VIEs) and voting
partnerships and other similar entities (partnerships) for purposes of
determining whether a decision maker is acting in a principal or agent capacity.
That analysis contains both power and economic elements. The proposed
requirements differed for partnerships (and similar entities) and VIEs. A
general partner acting as a principal was automatically considered as holding a
controlling financial interest requiring consolidation of the other entity. A
principal in a VIE was not automatically deemed the holder of controlling
financial interest (primary beneficiary) of the VIE.
In this meeting, the
Board decided to align the principal versus agent analysis for VIEs and
partnerships by requiring that a decision maker that is determined to be the
principal of a VIE to be automatically considered to be the primary beneficiary
of the VIE.