December 17, 2019
The Small Business Advisory Committee (SBAC) met on December 17, 2019. At the meeting, the SBAC members provided input on the following topics:
- EITF Issue No. 19-C, “Warrant Modifications: Issuers’ Accounting for Modifications of Equity Classified Freestanding Call Options That Are Not within the Scope of Topic 718, or Topic 815”: SBAC members shared their experiences related to warrant modification transactions and acknowledged the diversity in practice. However, members expressed concerns about requiring the same accounting for different types of warrant modification transactions and suggested that the guidance should require consideration of the nature and fact patterns in determining appropriate accounting.
- Disclosure Framework: Disclosures–Interim Reporting: SBAC members discussed the complexity associated with the judgment involved in defining material changes and significant events in the context of interim reporting. Members also shared their views on information that should be disclosed on a quarterly basis.
- SBAC members also received updates on the following projects: