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, March 6, 2019 FASB Board Meeting

Disclosure improvements in response to SEC Release on disclosure update and simplification. The Board considered whether to add a project to its technical agenda to address disclosures referred to the Board by the SEC and discussed whether and how those referred SEC disclosure requirements should be included in the Codification.
 
The Board decided to add a project to its technical agenda to address disclosures referred to the Board as part of the SEC’s Disclosure Update and Simplification initiative.
 
The Board decided to incorporate the following referred disclosures into the Codification for all entities: foreign currency, derivative accounting policies, technical correction for investment companies, real estate investment trusts, consolidations, assets subject to liens, preferred shares, repurchase and reverse repurchase agreements, earnings per share in interim periods, changes in reporting entity in interim periods, common control transactions in interim periods, products or services, oil- and gas-producing activities, and debt.
 
The Board decided to incorporate the referred disclosure on intra-entity profits and losses of related party transactions in separate financial statements into the Codification for public business entities only.
 
The Board decided not to incorporate the following referred disclosures into the Codification: equity compensation plans, discounts on shares, major customers, authorized amount of debt, and financial statement presentation of related party transactions.
 
Transition
 
The Board decided that an entity should apply the amendments prospectively. The Board decided not to require any transition disclosures.
 
Next Steps
 
The Board directed the staff to draft a proposed Accounting Standards Update for vote by written ballot. The Board decided to provide a comment period of either 45 days after issuance or June 28, 2019, whichever is later.



Updating the definition of collections. The Board discussed the results of external review of the FASB Accounting Standards Update, Not-for-Profit Entities (Topic 958): Updating the Definition of Collections. The Board made the following decisions. 
 
Scope 
 
The Board decided to clarify in the final Update that the scope of the guidance on collections in Subtopics 958-360 and 958-605 includes both not-for-profit and business entities, consistent with the pre-Codification guidance in FASB Statement No. 116, Accounting for Contributions Received and Contributions Made 
 
Other Issues 
 
The Board considered comments raised by external reviewers surrounding the accounting for the enhancement of collection items, the prospective application of the Update, and the scope of applicability of the new disclosure concerning how an entity defines the term direct care. The Board decided not to change the final Update in these areas.