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.

May 11, 2011 FASB Board Meeting

Investment properties.  The Board discussed presentation and consolidation issues related to investment property entities. The Board decided that:

    1. An Investment property entity would present the following items separately on the face of the financial statements related to investment property investments:

      a. Rental income
      b. Rental expenses
      c. Fair value of investment properties
      d. Debt.

    2. An Investment property entity would be prohibited from consolidating controlling interests in noninvestment property entities unless the controlling interest is in an operating entity that provides services to the investment property entity. Such controlling interests and controlling interests in another investment property entity would be accounted for under Topic 810 for consolidation.

The Board also decided to refine the definition of an investment property entity to state that the entity’s primary business activities relate to investing in real estate properties.