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 22, 2022 FASB Board Meeting

Accounting for and Disclosure of Software Costs. The Board discussed the pre-agenda research, including stakeholder feedback, on the accounting for and disclosure of software costs. The Board decided to add a project to its technical agenda to (1) modernize the accounting for software costs and (2) enhance the transparency about an entity’s software costs. The Board decided that the scope of the project is the recognition, measurement, presentation, and disclosure of costs to internally develop or acquire software, which encompasses all of the software costs currently subject to the guidance in Subtopics 350-40, Intangibles—Goodwill and Other—Internal-Use Software, and 985-20, Software—Costs of Software to Be Sold, Leased, or Marketed, for all entities. The staff plans to further develop potential paths for discussion at a future Board meeting.



Accounting for and Disclosure of Intangibles (Research). The Board discussed the pre-agenda research performed to date, including stakeholder feedback received on intangibles in response to the June 2021 Invitation to Comment, Agenda Consultation. Board members provided suggestions on and observations about the focus and prioritization for continued research efforts. The Board made no technical decisions.



Leases (Topic 842)—Lease Modifications. The Board discussed feedback on the lease modification accounting project and other feedback on Topic 842, Leases, from the 2021 Invitation to Comment, Agenda Consultation. On the basis of research performed and feedback received to date, the Board decided to remove the project from its technical agenda. The Board directed the staff to continue to monitor the ongoing application of the lease modification requirements in Topic 842 and other issues raised as part of the Board’s ongoing post-implementation review efforts.



Disclosure of Supplier Finance Program Obligations. The Board began its redeliberations on the proposed Accounting Standards Update, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The Board made the following decisions:

Scope

The Board affirmed the proposed scope guidance described in paragraphs 405-50-50-2 through 50-4 of the proposed Update.

Rollforward

The Board affirmed the amendment in the proposed Update to require an entity to disclose the balance sheet presentation and a rollforward of the amount of the obligation outstanding at the end of the reporting period.

Interim Reporting

The Board decided to require an entity to disclose the amount of the obligation outstanding at each interim reporting period.

The Board decided not to require an entity to disclose a rollforward of the amount of the obligation outstanding for each interim reporting period.

Amount Paid Early to Suppliers

The Board affirmed its decision not to require an entity to disclose the amount paid early by the finance provider that is outstanding at the end of the reporting period.

Aggregation

The Board affirmed the amendment in the proposed Update to allow a buyer entity that uses more than one supplier finance program to aggregate disclosures, so long as useful information is not obscured by the aggregation of programs that have substantially different characteristics.

Next Steps

The Board directed the staff to identify and develop examples of key terms (such as payment terms) for the disclosure requirement on the key terms of a supplier finance program. The Board will continue redeliberations at a future meeting.



Open Discussion—Agenda Consultation. The staff provided a summary of feedback received from stakeholders on potential improvements to FASB processes in response to the June 2021 Invitation to Comment, Agenda Consultation, and how the FASB is considering that feedback.
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