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.
August 8, 2012 FASB Board Meeting
Investment
property entities. The Board discussed various approaches to
providing investment property guidance in light of feedback received on the
proposed Accounting Standards Update, Real Estate—Investment Property
Entities (Topic 973).
The Board decided to evaluate the progress of
other projects on its agenda, such as the joint project on leases and the
research project on the application of asset- or entity-based guidance to
nonfinancial assets held in an entity, before making a final decision on
investment property guidance. The Board, however, did tentatively decide to
eliminate three of the approaches presented by the staff for future
consideration (Alternatives 1, 2, and 4 in the meeting handout were eliminated
by the Board). As a result, the investment property entity concept that was
proposed in the Exposure Draft would not be part of any future guidance and the
real estate investment trust (REIT) scope exception in Topic 946, Financial
Services—Investment Companies, would be retained for equity REITs. Issues
relevant to mortgage REITs will be discussed at a future meeting as part of the
investment companies project.
Investment
companies. The Board discussed whether entities regulated as
investment companies under the SEC´s Investment Company Act of 1940 should be
investment companies for accounting purposes.
The Board decided that an
entity regulated as an investment company under the 1940 Act would be an
investment company for accounting purposes and would not be required to assess
whether it meets the required criteria and typical characteristics of an
investment company.