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.
December 8, 2010 FASB Board MeetingEITF Consensus on Issue 09-H, "Health Care Entities: Presentation and Disclosure of Net Patient Service Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts." The Board decided to reexpose the consensus reached by the EITF at its November 19, 2010 meeting regarding Issue 09-H, “Health Care Entities: Presentation and Disclosure of Net Patient Service Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts," because of concerns raised by some constituents about the potential effects and implementation issues that may arise as a result of that consensus. The comment period for the Exposure Draft will be 60 days.
Private company outreach. The staff summarized the broad standard-setting concerns of nonpublic stakeholders received through various outreach forums. One issue, among many others raised, is a concern about the cost of fair value measurements that are currently required to evaluate goodwill for potential impairment on at least an annual basis.
The Board expressed support for adding a project to its agenda to explore alternatives to the manner in which reporting entities are required to assess goodwill for potential impairment. The project discussed by the Board only relates to step one of the two-step goodwill impairment test, which requires a reporting entity to compare a reporting unit’s fair value to its carrying amount. The second step is then performed only if the fair value calculated in step one is less than the reporting unit’s carrying amount in order to calculate the amount of the impairment.
The FASB Chairman decided to add a project to the Board’s agenda that will explore alternative approaches to the manner in which nonpublic entities are required to assess goodwill for potential impairment.
Although the project is focused on reporting by nonpublic entities, the Board requested that the staff perform additional research about the implications of also including public entities in the scope of this project and to report this information during deliberations.
The FASB Chairman decided not to include as part of this project the consideration of alternative treatments in the recognition and measurement of goodwill.
The Board intends to complete its deliberations by March 31, 2011.