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, July 27, 2016 FASB Board Meeting

Clarifying the definition of a business. The Board discussed a summary of comments received on the proposed Accounting Standards Update, Business Combinations (Topic 805): Clarifying the Definition of a Business. The Board made no technical decisions; however, it directed the staff to perform research on particular aspects of the proposed Update.


Interest income associated with the purchase of callable debt securities. The Board discussed the following:
  1. Scope of the amortization change for premiums on callable debt securities
  2. Disclosures for interest income associated with purchased debt securities and loans
  3. Transition, cost/benefit, and complexity
  4. Permission to ballot a proposed Update and comment period.
Scope of Amortization Change for Premiums on Callable Debt Securities

The Board decided that the scope of the amortization change for premiums would include all callable debt securities, excluding those subject to Subtopic 325-40.

Disclosures for Interest Income Associated with Purchased Debt Securities and Loans

The Board decided to move this topic to a pre-agenda phase and instructed the staff to perform more research.

The Board also decided that further research on disclosures associated with outstanding premiums on callable debt securities is no longer necessary.

Transition, Cost/Benefit, and Complexity

For the amortization change for premiums on callable debt securities, the Board decided to require modified retrospective transition. The Board decided that it has received sufficient information and analysis to make an informed decision on the perceived costs and benefits of issuing guidance on this topic and decided that the benefits justify the costs.

Permission to Ballot a Proposed Update and Comment Period

The Board directed the staff to draft a proposed Accounting Standards Update on the amortization change of premiums on callable debt securities for vote by written ballot.

The Board decided on a 45-day comment period for the forthcoming proposed Update.


Disclosure framework: disclosure review—inventory. The Board discussed results from outreach and research that were conducted on potential disclosure requirements for Topic 330, Inventory, and next steps. The Board made no technical decisions; however, it directed the staff to perform additional research. This research will be discussed at a future non-decision-making Board meeting.