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 22, 2021 FASB Board Meeting
Agenda prioritization. FASB staff provided an update on outstanding agenda requests. Additionally, the Board discussed the results of staff research and analysis on three potential projects related to recent agenda requests.
The Board decided to add a project to the Emerging Issues Task Force agenda to expand the proportional amortization method to investments in tax credits other than low income housing tax credit (LIHTC) investments. Additionally, the Board decided that the current scope of the project will be to evaluate whether the current criteria for an investment to be accounted for using the proportional amortization method are operable for investments in tax credit structures other than LIHTC structures.
The Board decided not to add the following potential projects to its agenda:
- Embedded derivatives: equity-indexed annuities and modified coinsurance arrangements
- Annuitization benefits: certain discount rate changes in other comprehensive income.
Disclosure of supplier finance program obligations. The Board discussed user outreach, potential disclosures, and transition guidance. The Board made the following decisions:
The Board decided that a buyer should disclose a rollforward of the amount confirmed by the buyer that is outstanding at the end of the reporting period.
The Board decided not to create a specific interim disclosure requirement and instead to rely upon principles in Topic 270, Interim Reporting, including those contemplated by the Board in the Disclosure Framework: Disclosures—Interim Reporting project.
The Board decided that the disclosures should be provided for each period in which a balance sheet is presented.
The Board decided to allow early adoption for financial statements that have not been issued or made available for issuance as of the issuance date of amendments in a final Accounting Standards Update.
Analysis of Costs and Benefits
The Board decided that:
- It has received sufficient information and analysis to make an informed decision on the perceived costs of the changes.
- Subject to feedback received through the comment letter process, the expected benefits would justify the expected costs of the amendments included in the proposed Update.
The Board directed the staff to draft a proposed Accounting Standards Update for vote by written ballot.
The Board decided on a 90-day comment period for the proposed Update.