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, October 12, 2022 FASB Board Meeting

Financial instruments—credit losses (Topic 326)—acquired financial assets. The Board continued initial deliberations and made the following decisions.


The Board decided to amend the term purchased with credit deterioration (PCD) to purchased financial assets (PFA) for referencing the financial asset acquisition accounting model.

Seasoning Criteria

The Board decided that seasoning should be defined using principles-based criteria that consider the acquirer’s involvement with the asset prior to acquisition, with a bright-line period of 90 days. The Board also decided that financial assets acquired in a business combination should be presumed seasoned.

Seasoned assets would be accounted for under the PFA accounting model.

Scope—Credit Cards and HELOCs

The Board decided that credit cards, home equity lines of credit (HELOCs), and other revolving arrangements with active borrowing privileges should be included within the scope of the PFA model when acquired through both business combinations and asset acquisitions.

Scope—Trade Accounts Receivable

The Board decided that trade accounts receivable should be within the scope of the PFA model when acquired through both business combinations and asset acquisitions.

Scope—Assets Not Recognized at Fair Value

The Board decided that assets not recognized at fair value in a business combination, primarily contract assets and a lessor’s net investment in sales-type and direct financing leases, should be included within the scope of the PFA model when acquired through both business combinations and asset acquisitions.

Next Steps

The Board will continue deliberations at a future meeting.

Accounting for and disclosure of crypto assets. The Board discussed how entities that hold crypto assets within the scope of this project should measure those assets.

The Board decided to require an entity to:

  1. Measure crypto assets at fair value, using the guidance in Topic 820, Fair Value Measurement.
  2. Recognize increases and decreases in fair value in comprehensive income each reporting period.
  3. Recognize certain costs incurred to acquire crypto assets, such as commissions, as an expense (unless the entity follows specialized industry measurement guidance that requires otherwise).
The Board also considered:

  1. Various measurement alternatives for crypto assets with inactive markets and decided not to pursue those alternatives.
  2. Whether to provide implementation guidance relative to the application of fair value measurement of crypto assets and decided not to provide additional measurement guidance as part of this project.
  3. Whether there should be a difference for private companies for the measurement of crypto assets and decided that the measurement and recognition requirements should be the same for all entities.
The Board will consider presentation, disclosure, and transition at a future meeting.

Agenda prioritization—employee benefit plans. The Board discussed the results of staff research and analysis on an agenda request that highlights issues related to employee benefit plan accounting.

The Board decided not to add a project to its technical agenda.

Agenda consultation ITC feedback. The Board also discussed stakeholder feedback received on its June 2021 Invitation to Comment (ITC), Agenda Consultation, on Topic 715, Compensation—Retirement Benefits.