At its meeting on December 12, 2018, the Board discussed how the minimum performance requirements discussed at the September 2018 Board meeting would be applied in the context of the DRM accounting model. The Board tentatively decided that an entity can apply the DRM model if designation of the asset profile, target profile and designated derivatives does not reflect an imbalance that would create misalignment that could result in an accounting outcome inconsistent with the purpose of the DRM model. The Board also tentatively decided that, subject to further articulation, there must be an economic relationship between the target profile and the combination of the asset profile and designated derivatives. The Board emphasized its previous tentative decision not to define a quantitative threshold. In addition, the Board instructed the staff to seek feedback on the articulation of the strength of the economic relationship during outreach on the Core Model. The Board will continue its deliberations on the DRM model at future meetings.

Review the IASB Update and podcast on the Board's Web site.