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.

August 5, 2015 Board Meeting

Investment Companies—Disclosures about Investments in Other Investment Companies. The Board discussed the feedback received through comment letters on the proposed Accounting Standards Update, Financial Services—Investment Companies (Topic 946): Disclosures about Investments in Other Investment Companies, specifically discussing proposed disclosure about the following:
  1. Master-feeder arrangements
  2. Investments held by investee funds.
The Board concluded that the benefits of the information resulting from the proposed disclosures would not justify the costs of preparing and providing the information and decided to remove the project from its agenda. The Board decided to clarify, as part of its Technical Corrections and Improvement project, that the requirement to disclose investments held by investee funds applies only to nonregulated investment companies.


Accounting for Measurement Period Adjustments in a Business Combination. The Board discussed the comments received on its May 21, 2015 proposed Accounting Standards Update, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, and made the following decisions:

Adjustments to Provisional Amounts

The Board affirmed the proposal that an acquirer should recognize adjustments to provisional amounts in the reporting period in which the adjustment amount is determined and recognize the effects of changes in depreciation, amortization, or other income effects arising from changes to the provisional amounts, if any, in the income statement in the reporting period in which the adjustment to the provisional amount is determined.

The Board also affirmed the proposal that acquirers should disclose the effect on current-period earnings, by line item, that would have been recognized in a previous period if the adjustment to provisional amounts had been recognized as of the acquisition date.

Transition and Transition Disclosures

The Board affirmed the proposal that acquirers should apply the changes prospectively to adjustments to provisional amounts identified after the effective date of the change that are within the measurement period. The Board also affirmed the proposal to require the disclosures in paragraphs 250-10-50-1(a) through 50-2 in the period of transition.

Effective Date

The Board decided that the changes will be effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. The Board decided to permit early adoption for any interim and annual financial statements that have not yet been issued.
For all other entities, the Board decided that:
  1. The changes should be effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017.
  2. Early adoption would be permitted in any interim and annual financial statements that have not yet been made available for issuance.
Next Steps

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