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, May 8, 2019 FASB Board Meeting

Agenda prioritization. The Board discussed the results of staff research on six potential projects related to eight recent agenda requests and a technical inquiry.

The Board decided to add the following projects, which include the issues listed below, to the EITF agenda:
  1. Financial Instruments—Clarifying the Interactions between Topic 321, Investments—Equity Securities, and Topic 323, Investments—Equity Method and Joint Ventures
    1. Issue 1: Accounting for equity securities under the measurement alternative upon the application and discontinuation of the equity method of accounting
    2. Issue 2: Recognizing investee losses when an investor has other equity investments in the investee
    3. Issue 3: Scope considerations for certain forward contracts and purchased call options on equity securities
  2. Revenue Recognition—Contract Modifications of Licenses of Intellectual Property
    1. Issue 1: Accounting for additional rights that are granted to the licensee
    2. Issue 2: Accounting for the revocation of licensing rights (including conversion of term software licenses to software as a service arrangement).
The Board also decided to expand the scope of its project, Improving the Accounting for Asset Acquisitions and Business Combinations, to include the accounting for in-process research and development and contingent consideration obligations recognized upon the initial consolidation of a variable interest entity that is not a business.

The Board decided not to add the following potential projects to its agenda:
  1. Collective Defined Contribution Plans and the Definition of a Defined Contribution Plan
  2. Share Repurchase Disclosures—Price and Earnings Per Share Effects
  3. Accounting for Emissions Trading and Other Environmental Market Transactions.
The Board also decided to remove the project, Measurement Alternative and Observable Transactions Identified after the Reporting Date, from its research agenda.

Codification improvements—hedge accounting. [This summary will be posted as soon as it becomes available.]