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.
June 22, 2011 FASB Board MeetingAccounting
for financial instruments: disclosures. The staff briefly
summarized what it has learned about financial instruments risk disclosures
through research and outreach with users, preparers, and others.
Board decided that the project would focus on improving disclosures about the
liquidity and interest rate risks of financial instruments. The Board directed
the staff to undertake additional outreach with users to learn their views about
the types of entities that should be required to provide expanded disclosures
about those risks, for discussion at a future meeting.
for financial instruments: classification and measurement. The
Board discussed how an entity would classify and measure loan commitments,
revolving lines of credit, and standby letters of credit.
decided that an entity would measure loan commitments, revolving lines of
credit, and standby letters of credit at fair value if its business strategy for
the underlying loans is to hold them for sale; changes in fair value would be
recognized in net income.
For all other loan commitments, revolving
lines of credit, and standby letters of credit, an entity would recognize any
fees received in accordance with the existing guidance in FASB Accounting
Standards Codification® Subtopic 310-20. Under that guidance, if the
likelihood is that exercise of the commitment is remote, any commitment fees
received would be recognized as fee income over the commitment period. If the
likelihood is that exercise is not remote, any commitment fees received would be
deferred and recognized over the life of the funded loan as an adjustment of