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, June 26, 2019 FASB Board Meeting
Ratification of an EITF consensus-for-exposure. The Board ratified the following consensus-for-exposure reached by the EITF at its June 13, 2019 meeting and directed the staff to draft a proposed Update reflecting the consensus-for-exposure for vote by written ballot.
Issue No. 19-A, “Financial Instruments—Clarifying the Interactions between Topic 321 and Topic 323”
The Task Force reached a consensus-for-exposure that an entity should consider observable transactions that would require the investor to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative under Topic 321, Investments—Equity Securities, immediately before applying or upon discontinuing the equity method under Topic 323, Investments—Equity Method and Joint Ventures.
The Task Force reached a consensus-for-exposure that an entity should not consider whether the equity security underlying the forward contract or purchased option would, individually or with existing investments, be accounted for under the equity method upon settlement of the forward contract or exercise of the purchased option for purposes of evaluating the characteristic in paragraph 815-10-15-141(a).
The Task Force reached a consensus-for-exposure that an entity should apply the proposed amendments in the Update resulting from this Issue prospectively. The Task Force also reached a consensus-for-exposure not to require any recurring disclosures related to equity method investments or equity securities that are accounted for under the measurement alternative. In addition, the Task Force reached a consensus-for-exposure that an entity should disclose in the period of adoption 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 Board decided to expose the proposed Update for public comment for 30 days.
Open discussion: Not-for-profit reporting of gifts-in-kind. The FASB chairman added a project to the research agenda on the presentation, disclosure, and valuation of gift-in-kind contributions, including donated pharmaceuticals. The staff is planning to discuss the research with the Board in August, at which time the Board will determine whether to add a project to the technical agenda and, if so, what the scope of the project would be.