Tentative Board Decisions

Tentative 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.

January 8, 2014 FASB Board Meeting

Consolidation: Principal versus Agent Analysis. The Board discussed how to further integrate rights held by other parties, one of the principal versus agent factors included in the proposed FASB Accounting Standards Update, Consolidation (Topic 810): Principal versus Agent Analysis, within the existing guidance in Topic 810 for voting interest entities and variable interest entities. This included the following issues:
  1. How kick-out rights, liquidation rights, and participating rights should be considered when evaluating paragraph 810-10-15-14(b)(1)
  2. How kick-out rights, liquidation rights, and participating rights should be evaluated when determining whether an entity has a controlling financial interest for voting interest entities and variable interest entities
  3. How redemption rights should be evaluated.
The Board made no decisions, directing the staff to perform further analysis of the first two issues.