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, September 20, 2017 FASB Board Meeting

Agenda priority. The Board discussed (1) the results of staff research and analysis on the projects included in the FASB Invitation to Comment, Agenda Consultation, and (2) the status of its research agenda and made the following decisions.

Intangibles. The Board decided to remove the holistic project on Intangibles from its research agenda and maintain a component on its research agenda focused on developing qualitative disclosures about intangibles as part of the overall disclosure framework project.

The Board also decided to combine the following two projects on its research agenda: (a) Accounting for Identifiable Intangible Assets in a Business Combination for Public Business Entities (PBEs) and Not-for-Profit Entities (NFPs) and (b) Subsequent Accounting for Goodwill for PBEs and NFPs.

Pensions and Other Postretirement Benefit Plans. The Board decided to remove from its research agenda a project on pensions and other postretirement benefit plans.

Distinguishing Liabilities from Equity (Including Convertible Debt). The Board decided to add to its agenda a project on distinguishing liabilities from equity. The objective of the project is to improve understandability and reduce complexity (without loss of information for users). The project will focus on indexation and settlement (in the context of the derivative scope exception), convertible debt, disclosures, and earnings-per-share.

Financial Performance Reporting.

Disaggregation of Performance Information

The Board decided to add a project to its agenda to focus on the disaggregation of performance information. The project would consider disaggregation either through presentation in the income statement or through disclosure in the notes. The project would base the disaggregation on requiring functional lines to be disaggregated into natural components.

Structure of the Performance Statement

The Board retained a component of the project on its research agenda associated with improving the structure of the performance statement and developing an operating performance measure.

Segment Reporting. The Board decided to add a project to its agenda on segment reporting. The objective of the project is to improve the segment aggregation criteria and to improve the disclosure requirements.

Interaction with Not-for-Profit Phase 2 Research Project. The Board considered how the projects on disaggregation of performance information and segment reporting interact with the NFP phase 2 research project. The Board decided to remove from the scope of the NFP Phase 2 research project an alternative that would have required an NFP health care entity to apply Topic 280, Segment Reporting. The Board also decided to combine its research projects on for-profit entities and not-for profit entities for structuring the performance statement (or statement of activities).

Accounting for Income Taxes: Presentation of Tax Expense/Benefit. The Board decided to continue its research on this project and to expand the scope to consider other potential simplifications to accounting for income taxes that were suggested by stakeholders.

Inventory and Cost of Sales. The Board decided to continue its research on this project.

Targeted Improvements to the Statement of Cash Flows. The Board decided to continue its research on potential targeted improvements to the statement of cash flows.

Accounting for Financial Instruments: Interest Rate Risk Disclosures. The Board decided to remove this project from the research agenda.