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.

January 14, 2015 FASB Board Meeting

Financial Instruments—Classification and Measurement. The Board continued redeliberating the February 2013 proposed Accounting Standards Update, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, specifically discussing disclosures about core deposit liabilities and hybrid financial instruments containing bifurcated embedded derivatives, the benefits, costs, and complexity of the decisions reached to date, and the transition method.

Disclosures about Core Deposit Liabilities

The Board decided not to retain the proposed disclosures about core deposit liabilities. The proposal would have required public business entities to disclose, for each annual period, the balance of its core deposit liabilities, the weighted-average life of the core deposit liabilities based on the entity's historical experience, and a qualitative description of what management considers to be core deposits.

Disclosures about Hybrid Financial Instruments Containing Bifurcated Embedded Derivatives

The Board decided that entities should be required to disclose the carrying amount, measurement attribute, and line item within the financial statements in which bifurcated embedded derivatives and related host contracts are presented and that the disclosure should be provided in financial statements issued after the change is effective (prospective transition).

The Board decided to expose that proposed disclosure for public comment and directed the staff to draft a proposed Accounting Standards Update with a comment period ending April 30, 2015, for vote by written ballot. The Board will decide whether and how to finalize that change after it considers the stakeholder feedback received.

Benefits and Costs

The Board discussed a staff analysis of the benefits, costs, and complexity of the proposed changes to generally accepted accounting principles. A majority of the Board believe that the expected benefits of those changes justify the perceived costs of providing and using the information.

The Board directed the staff to draft a final Accounting Standards Update for vote by written ballot.


The Board affirmed its decision in the February 2013 proposed Update to require a modified retrospective transition approach that will require a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period in which the guidance is effective. The Board also decided that the guidance for the practical expedient related to nonmarketable equity securities and the disclosure requirements should be effective prospectively.

Next Steps

The Board will discuss and decide on the effective date of the changes after the final Accounting Standards Update has been drafted.