March 11, 2021

The Emerging Issues Task Force (EITF) met on March 11, 2021, and deliberated the following topics:
  1. To affirm the proposed recognition framework
  2. To affirm the proposed measurement approach subject to certain conforming changes to ensure consistency with the existing requirements in Subtopic 470-50, Debt—Modifications and Extinguishments
  3. To affirm the proposal whereby no specific allocation approach is prescribed for situations in which the substance of the transaction includes multiple elements
  4. To affirm certain clarifying changes to the amendments in the final Update and to add an example in Subtopic 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity, for modifications related to compensation for goods or services and include a related reference in Topic 718, Compensation—Stock Compensation
  5. To require disclosures about the nature and effect of a modification within the scope of the amendments in the final Update.
The Task Force also reached a consensus on other items, including transition (prospective only), an effective date for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, and permitting early adoption.   
  • Agenda Consultation—The Task Force members provided feedback to the FASB on potential projects to be discussed as part of the FASB's upcoming Invitation to Comment. 
On March 24, 2021, the Board will consider for ratification the final consensus on Issue 19-C and will discuss next steps on the issues included in Issue 19-B (which was referred back to the Board). The next EITF meeting is tentatively scheduled for June 10, 2021.  For more information on the EITF, including updates on the next EITF meeting date, visit the  FASB website.

EITF Meeting Recaps are provided for those interested in following the activities of the EITF. More details on the EITF’s projects can be found within the meeting minutes, which will be published on the FASB website in the coming weeks.