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.
April 25, 2012 FASB Board MeetingDisclosure
framework. The Board discussed issues on (1) interim disclosures
and (2) the costs and consequences of disclosure. The Board decided to include
in the Invitation to Comment a discussion of both those issues.
Invitation to Comment also will include an overview of the project, a framework
for the Board for setting disclosure, a decision process an entity can use for
providing disclosure, and guidance for organizing and formatting the notes. No
further discussion on the Invitation to Comment is planned.
policy and procedures.
The staff presented a summary of the
comment letters received on the Exposure Draft, Consolidation (Topic 810):
Principal versus Agent Analysis. That feedback focused on a variety of
different issues, including:
discussed the need to carefully consider all of these issues during
redeliberations. The meeting was informational; no decisions were
- The principle of and objective for consolidation and potential alignment
with the voting interest model
- Substantive kick-out and participating rights
- Fee seniority
- The decision maker´s exposure to negative and positive returns
- Reassessment criteria
- Principal versus agent as a separate analysis
- Consolidation conclusions for certain entities, including money market
- Related party considerations
- The evaluation of partnerships and similar entities
- Effective date and transition
- Application to nonpublic entities
- Determination of the primary beneficiary
- Examples in the proposed implementation guidance.
entity fair value measurement disclosures. The Board discussed
whether a narrative disclosure of the reasons for significant changes in the
amount of assets and liabilities measured under Level 3 of the fair value
hierarchy would be a cost-effective alternative to the existing requirement to
disclose tabular reconciliations from the opening balances to the closing
balances for (1) derivative assets and liabilities, (2) pension and
postretirement plan assets, and (3) all other assets and liabilities measured
under Level 3 of the fair value hierarchy on a recurring basis. The Board
directed the staff to perform targeted outreach with preparers, CPA
practitioners, and users of nonpublic entity financial statements to gather
information about whether that alternative would be cost-effective, and to
report its findings at a future Board meeting.
The Board decided that the
scope of the project should exclude nonpublic entities for which substantially
all assets are measured at fair value on a recurring basis.
also decided that the scope of the project should exclude not-for-profit
entities; however, the Board directed the staff to solicit input from
stakeholders about that exclusion.
of a nonpublic entity. The Board decided that an entity that is
required to file or furnish financial statements with the SEC for purposes of
issuing securities to be traded in a public market should not be included in the
definition of a private company. The Board also decided that a privately held
financial institution should be included in the definition of a private