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, May 25, 2022 FASB Board Meeting
Interim reporting—narrow-scope improvements (formerly the disclosure framework: disclosures—interim reporting project). The Board discussed feedback received on the proposed Accounting Standards Update, Interim Reporting (Topic 270): Disclosure Framework—Changes to Interim Disclosure Requirements, and feedback received on the June 2021 Invitation to Comment, Agenda Consultation.
The Board decided that the project objective is to improve the Codification guidance in Topic 270, Interim Reporting, by clarifying when the guidance in Topic 270 is applicable and improving the navigability of the required interim disclosures.
In furthering this objective, the Board directed the staff that the future amendments to the disclosure principle should be intended to complement the interim disclosure requirements in Topic 270.
The Board affirmed the amendments to the objective of Topic 270 to provide guidance on accounting and disclosure issues specific to interim reporting and to set forth disclosure requirements for interim financial statements and notes in accordance with generally accepted accounting principles.
Additionally, the Board decided to include all of the amendments in the proposed Update in the scope of redeliberations.
Agenda consultation. The Board continued its discussion on stakeholder feedback received on its June 2021 Invitation to Comment, Agenda Consultation.
On the basis of that feedback and the need to focus FASB resources on higher priority projects, the Board decided not to add projects to its technical agenda on the following topics at this time:
- Financial key performance indicators
- Balance sheet classification
- Materiality considerations for disclosures
- Debt modifications
- Fair value measurement disclosures
- Backwards tracing for income taxes
- Accounting for the sale of a business
- Recognition and measurement of market risk benefits
- Equity method of accounting
- Stock buybacks
- Definition of participating interest in transfers and servicing of financial assets.
Additionally, in response to investor feedback, the FASB chair added a project, Financial Key Performance Indicators for Business Entities, to the FASB research agenda. This project will (1) be informed by the progress of the Disaggregation—Income Statement Expenses project and (2) explore standardizing the definitions of financial key performance indicators and will consider interactions with the regulatory framework.
Accounting for financial instruments with environmental, social, and governance (ESG)-linked features and regulatory credits. The Board discussed the pre-agenda research, including stakeholder feedback received on regulatory credits (hereinafter referred to as environmental credits) in response to the June 2021 Invitation to Comment, Agenda Consultation. The Board added a project to the technical agenda on the recognition, measurement, presentation, and disclosure requirements for participants in compliance and voluntary programs that result in the creation of environmental credits. These credits include (but are not limited to):
- Those created under compliance programs, such as cap and trade and baseline allowance programs
- Renewable energy credits/certificates
- Renewable identification numbers
- Carbon offset credits.
Additionally, the project includes financial reporting requirements for nongovernmental creators of environmental credits. The Board decided that the preliminary scope of the project is environmental credits that are legally enforceable and can be traded. The Board also decided that the scope of the project excludes the accounting for tax credits, tax incentives, or investments in renewable energy structures or entities (such as partnerships).