Project Updates
Entrance Fee Deposits and Deferred Revenue
Last Updated: February 9, 2006 (Updated sections are indicated with an asterisk *)
The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.
Objective
*Decisions Reached at Last Board Meeting
*Board Meetings
Contact Information
Objective
The objective of this FSP is to provide guidance on the balance sheet classification of the refundable portion of entrance fee deposits and the deferred revenue associated with entrance fees for entities within the continuing care retirement community industry. Historically, entities within the continuing care retirement community industry have presented these types of liabilities associated with the refundable portion of entrance fees as long term liabilities and the related deferred revenue as non-current. This FSP will clarify whether FASB Statement No. 78, Classification of Obligations That Are Callable by the Creditor, is applicable to this type of arrangement.
*Decisions Reached at Last Board Meeting
The Board decided not to add this project to its agenda highlighting its concern about the interaction of this issue with current Board initiatives such as the revenue recognition and financial performance reporting by business entities projects. In addition, the Board noted the resolution of this issue could create issues in other industries as a result of entities analogizing to the conclusions reached on this issue.
*Board Meetings
The Board meeting minutes 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 become final only after a formal written ballot to issue a final Statement, Interpretation, or FSP.
The following are links to the minutes for each meeting.
| *February 1, 2006 | Board Meeting—Agenda Decision |
Contact Information
Susan Cosper
Practice Fellow
smcosper@fasb.org