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, January 30, 2019 FASB Board Meeting
Ratification of EITF consensus. The Board ratified the consensus reached at the January 17, 2019 EITF meeting on the following EITF Issue. The Board directed the staff to draft an Accounting Standards Update reflecting the consensus for vote by written ballot.
Issue No. 18-B, “Improvements to Accounting for Episodic Television Series”
The Task Force reached a consensus to align the accounting for production costs of episodic television series with the accounting for production costs of films by removing the content distinction from Subtopic 926-20, Entertainment—Films—Other Assets—Film Costs. The Task Force also reached a consensus to allow an entity to assess a film group for impairment and to amend the presentation and disclosure requirements for films and episodic content. In addition, the Task Force agreed to make conforming amendments to Subtopic 920-350, Entertainment—Broadcasters—Intangibles—Goodwill and Other, to align its impairment and presentation and disclosure guidance with the Task Force’s decisions. The Task Force also decided to require that an entity reassess estimates of the use of a film and account for any changes prospectively.
Transition and Effective Date
The Task Force reached a consensus that would require an entity to apply the amendments in the Update resulting from this Issue on a prospective basis and disclose the nature of and reasons for the change in accounting principle, the transition method, and a qualitative description of the financial statement line items affected by the change.
The Task Force reached a consensus to require that the amendments in the Update resulting from this Issue be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019, for public business entities. For all other entities, the amendments are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2020. The Task Force also reached a consensus to permit early adoption in any interim period.
Distinguishing liabilities from equity (including convertible debt). The Board discussed (a) disclosures for convertible instruments, (b) determining whether instruments are indexed to, and settled in, an entity’s own stock within the context of the derivative scope exception and related disclosure, and (c) earnings per share. The meeting was educational; no decisions were made.
The Board will hold a decision-making meeting on Wednesday, February 13, 2019.