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, September 2, 2020 FASB Board Meeting

Improving the accounting for asset acquisitions and business combinations. The Board affirmed that the objective of the project is to improve the accounting for asset acquisitions and business combinations by narrowing the differences between the two acquisition models (the accounting for acquisitions of assets and for the acquisitions of businesses). The Board directed the staff to consider the existing acquisition models, as well as other alternatives to narrow the differences and improve the accounting. 
 
The Board affirmed that the project should address the accounting for contingent consideration, transaction costs, certain recognition and measurement exceptions, as well as the accounting for contingent consideration and in-process research and development (IPR&D) by a primary beneficiary of a variable interest entity that is not a business. 
 
The Board removed from the scope of the project:
  1. Narrowing differences between the accounting for IPR&D in acquisitions of assets and acquisitions of businesses.
  2. The accounting for reassessments of lease contracts in asset acquisitions and the lease recognition and measurement exception. These lease issues will be considered as part of the FASB’s implementation efforts on leases.