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, June 21, 2017 FASB Board Meeting

Leases implementation. The Board decided to make various proposed technical corrections and improvements to the amendments in Accounting Standards Update No. 2016-02, Leases (Topic 842).

Transition Guidance

For entities that have early adopted Topic 842, the Board decided that the proposed amendments would be effective upon issuance of a final Update and would follow the transition guidance in Topic 842. For entities that have not adopted Topic 842, the Board decided that the effective date and transition requirements for the proposed amendments should be the same as the effective date and transition requirements in Topic 842.

Analysis of Benefits and Costs

The Board concluded that the expected benefits of the proposed changes would justify the costs.

Next Steps

The Board directed the staff to draft a joint proposed Accounting Standards Update, which would include the technical corrections to Update 2016-02 and the technical corrections to Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, for vote by written ballot, with a comment period of 45 days.


Open discussion: revenue recognition implementation. The Board discussed an implementation question related to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), and Accounting Standards Update No. 2016-02, Leases (Topic 842). This meeting was informational and no decisions were made.

Allocation of Contract Consideration to Revenue and Lease Components

The Board clarified that it did not intend for an entity to revisit the allocation of contract consideration to lease components (within the scope of Topic 840, Leases) when an entity adopts Update 2014-09. The Board decided that no further standard-setting action was needed and directed the staff to include the meeting minutes on the FASB’s revenue recognition webpage.

 
Financial instruments—recognition and measurement implementation. The Board decided to make various proposed technical corrections and improvements to the amendments in Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

Transition Guidance

For entities that have early adopted the guidance on the presentation change related to fair value option liabilities, the Board decided that the proposed amendments relevant to the fair value option would be effective upon issuance of the final Update and follow the transition guidance in Update 2016-01. For the remaining proposed amendments, the Board decided that the effective date and transition requirements should be the same as the effective date and transition requirements in Update 2016-01.

Analysis of Benefits and Costs

The Board concluded that the expected benefits of the proposed changes would justify the costs.

Next Steps

The Board directed the staff to draft a joint proposed Accounting Standards Update, which would include the technical corrections to Accounting Standards Update No. 2016-02, Leases (Topic 842), and the technical corrections to Update 2016-01, for vote by written ballot, with a comment period of 45 days.


Consolidation reorganization and targeted improvements. The Board discussed (1) comments from external reviewers on a draft of the proposed Accounting Standards Update on the reorganization of consolidation guidance and (2) remaining issues, including costs and benefits, and made the following decisions.

Transition Provisions

The Board affirmed its decision on transition requirements from the March 8, 2017 Board meeting.

Cost-Benefit Analysis

The Board decided that the benefits of the amendments in the proposed Update would justify the related costs.

Comment Period

The Board decided that the comment period for the proposed Update should be 75 days.

Next Steps

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


Disclosure framework: disclosure review—inventory. The Board discussed a summary of comments received on the proposed Accounting Standards Update, Inventory (Topic 330): Disclosure Framework—Changes to the Disclosure Requirements for Inventory. No decisions were made.

Next Steps

The Board directed the staff to conduct additional outreach and research on the proposed disclosure requirements for changes to the inventory balance. The Board asked the staff to consider the application of those proposed disclosures to companies within manufacturing and wholesale businesses and the needs of financial statement users in those industries. The Board also asked the staff to present a plan for redeliberations collectively with the other disclosure framework projects at a future meeting.