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.

Wednesday, November 16, 2016 FASB Board Meeting

Technical corrections and improvements. The Board decided to remove the identified wording error in paragraph 958-205-50-1B(e)(3) of Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. The amendments will be included in the forthcoming Accounting Standards Update, Technical Corrections and Improvements.


Agenda prioritization. The Board discussed the results of staff research on the following three potential projects:
  1. Collaborative Arrangements
  2. Customer's Accounting for Implementation, Setup, and Other Upfront Costs (Implementation Costs) Incurred in a Cloud Computing Arrangement That Is Considered a Service Contract
  3. Foreign Currency.
Collaborative Arrangements

The Board decided to add a project to its agenda to clarify when transactions between partners in a collaborative arrangement (that is within the scope of Topic 808, Collaborative Arrangements) should be accounted for as revenue transactions in Topic 606, Revenue from Contracts with Customers.

Customer's Accounting for Implementation, Setup, and Other Upfront Costs (Implementation Costs) Incurred in a Cloud Computing Arrangement That Is Considered a Service Contract

The Board asked the Emerging Issues Task Force Chairman to assemble a working group of preparers, auditors, and investors who regularly encounter implementation fees in cloud computing arrangements. The objective of the working group is to provide the FASB with more information on the types of implementation costs incurred. That information will enable the FASB to better assess the scope of a potential project on the accounting for implementation fees in a cloud computing arrangement.

Foreign Currency

The Board decided not to add a project on foreign currency to its agenda. The Board decided that foreign currency disclosures could be a future topic to consider as part of the Board's current disclosure framework project.


Disclosure framework—inventory. The Board decided to require an entity that applies the retail inventory method to qualitatively and quantitatively disclose the critical assumptions used in their calculation of the cost of inventory under the retail inventory method. The Board also concluded that the expected benefits of all the forthcoming proposed amendments to Topic 330, Inventory, justify the perceived costs.