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.
May 2, 2012 FASB Board MeetingDisclosures
about risks and uncertainties and the liquidation basis of
The Board decided that a limited-life entity
should prepare financial statements using the liquidation basis of accounting
when significant management activities are limited to those necessary to carry
out a plan of liquidation other than that which was contemplated in the entity’s
The Board also decided that it will revisit the
question of whether management should be required to assess whether there is
doubt about an entity’s ability to continue as a going concern in light of its
recent decision not to pursue going-concern-type disclosures in the project
about liquidity and interest rate risk disclosures. The Board directed the staff
to consider this question in the context of a separate project and to continue
with the balloting process for a proposed Accounting Standards Update on the
liquidation basis of accounting.
of a nonpublic entity.
The Board decided that a for-profit
entity that is a conduit bond obligor for conduit debt securities that are
traded in a public market would not be deemed a private company for
standard-setting purposes even if the entity otherwise meets the characteristics
of a private company as defined in this project.