Post-implementation Review of Section 3856 – AcSB

Date recorded:

At its meeting on March 20-21, 2018, the AcSB began deliberating stakeholders’ comments and the PEAC’s recommendations on how to proceed with the proposals given the feedback received on its initial measurement of related party financial instruments and significant risk disclosure proposals. The Board instructed the staff to draft wording clarifying various aspects of the Exposure Draft for discussion at its May 2018 meeting, including:

  1. how an enterprise accounts for the various elements in a related party transaction that includes both financial and non-financial assets and liabilities;
  2. updating and adding illustrative examples to help stakeholders apply the proposals;
  3. accounting for the transfer of impaired related party financial assets between related parties; and
  4. the initial measurement of financial instruments with variable or contingent consideration. The Board will also consider stakeholders’ comments on the subsequent measurement of related party financial instruments, including indexed related party financial liabilities and will provide authoritative guidance on entity-specific disclosures. The Board will continue deliberating this topic in its May 2018 meeting and plans to issue the final amendments no later than the fourth quarter of 2018.

Review the Executive Summary on the AcSB's Web site.

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