Balance Sheet Classification of Debt: The project is expected to reduce cost and complexity by replacing the existing fact-pattern specific guidance with a principle to classify debt as current or noncurrent based on the contractual terms of a debt arrangement and an organization’s current compliance with debt covenants.
Download the Exposure Draft, Debt (Topic 470): Simplifying the Classification of Debt in a Classified Balance Sheet (Current versus Noncurrent).
Cloud Computing: The purpose of the project is to reduce complexity by aligning the accounting for economically similar transactions, and the project is expected to reduce uncertainty in how to account for the costs of implementing a cloud computing arrangement.
Download the Exposure Draft, Intangibles—Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract; Disclosures for Implementation Costs Incurred for Internal-Use Software and Cloud Computing Arrangements (a consensus of the FASB Emerging Issues Task Force).
Collaborative Arrangements: The project is expected to reduce cost and complexity by clarifying when transactions between participants in a collaborative arrangement are within the scope of the new revenue guidance, providing unit of account guidance, and potentially providing a framework for accounting for transactions in collaborative arrangements that do not fall under other authoritative guidance. Refer to the project page for further details.
Download the Exposure Draft, Collaborative Arrangements (Topic 808): Targeted Improvements.
Consolidation (Reorganization): The objective of the project is to reorganize the guidance in Topic 810, Consolidation. The Board has learned from stakeholders that Topic 810, as currently organized, is difficult to navigate and is reorganized within practitioner guidance to assist practitioners and preparers in application. Refer to the project page for further details.
Download the Exposure Draft, Consolidation (Topic 812): Reorganization
Consolidation (Targeted Improvement to Related Party Guidance): The objective of the project is to reduce cost and complexity by making targeted improvements to the related party guidance for Variable Interest Entities specific to the following items:
- Applying the VIE guidance to private companies under common control
- Considering indirect interests held through related parties under common control for determining whether fees paid to decision makers and service providers are variable interests
- Applying certain requirements when power is shared among related parties or when, as a group, related parties under common control have a controlling financial interest in a VIE but none of the parties individually conclude that they have a controlling financial interest.
Download the Exposure Draft, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities
Leases (Lessor Narrow-Scope Improvements): This project is expected to reduce cost and complexity surrounding implementation of Topic 842, Leases, by addressing certain lessor narrow-scope issues. Specifically, the project is expected to simplify lessor accounting for (a) sales and other similar taxes and (a) certain lessor costs and further align the accounting for these items with revenue guidance. In addition, the project would clarify the accounting for variable payments in contracts with both lease and nonlease component.
Refer to the project page for further details.
For more information on FASB projects, visit the FASB’s technical agenda page.
For more information on Emerging Issues Task Force (EITF) projects that seek to reduce complexity, visit the EITF page.
For more information on Private Company Council (PCC) projects that seek to reduce complexity, visit the PCC page.