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, May 24, 2017 FASB Board Meeting

Agenda consultation: reporting performance and cash flows. The Board discussed the staff research on the subtopics on reporting performance and cash flows in Chapter 4 of the August 2016 Invitation to Comment, Agenda Consultation. The discussion was educational; no decisions were made.

The Board discussed (1) potential new projects and (2) directed the staff to perform additional research on the following matters:

Segment Reporting

The Board discussed potential improvements to the aggregation criteria and the segment disclosure requirements. The Board asked the staff to consult with preparers to understand their current segment reporting processes and to understand the impact of narrow-scope improvements to the aggregation criteria and the segment disclosure requirements.

The Board directed the staff to share the results of their consultations and prepare a separate agenda request for a potential new project on segment reporting.

Performance Statement—Structure

The Board discussed whether the income statement should be a structured statement with a required operating performance measure and considered the alternatives. The staff was asked to further study developing an operating performance measure under (1) a definitional approach, (2) a descriptional approach, and (3) a self-defined approach.

The Board also asked the staff to research operating income measures from financial and nonfinancial entities and observe what items are included and excluded from those measures.

Performance Statement—Disaggregation

The Board discussed alternative ways to require greater disaggregation of performance information in either a presentation or disclosure setting. Board members’ preferences differed on the alternatives.

To help narrow the alternatives, the Board asked the staff to provide additional analysis on the following alternatives: (1) disaggregate functional lines into natural components, (2) redefine infrequency of occurrence, (3) define and separate remeasurements, and (4) describe the aggregation process.

Cash Flow Statement—Structure

The Board discussed whether to revise the definitions of operating, investing, and financing activities. No additional research was requested.

Cash Flow Statement—Classification Issues

The Board discussed whether to make improvements to the classification guidance for certain types of cash flows for which the guidance is either unclear or lacking. The Board directed the staff to bring a separate agenda request for a potential new project on targeted cash flow classification improvements, similar to the recent Emerging Issues Task Force projects.

Articulation

The Board discussed articulation of information in the financial statements and how the interrelationships between the statements could be made more apparent through presentation. The Board observed that it should not undertake additional work with respect to articulation at this time; however, this matter could be revisited if, and when, progress is made on the structure of the performance statement.