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FASB and IASB discuss leases and classification and measurement

  • FASB-IASB Image

Nov 22, 2013

At the November 20, 2013, joint meeting, the FASB and IASB redeliberated the leases project and topics related to the boards’ respective projects on classification and measurement of financial instruments.



The boards discussed feedback received from outreach meetings and comment letters on the leases exposure draft. In addition, the boards reviewed the staffs’ views on the main topics for redeliberation and tentatively decided which items to be discussed at future meetings.

For more information, please see Deloitte’s Accounting Journal Entry or the meeting minutes on the FASB's Web site.


Financial instruments: Classification and measurement

The boards redeliberated the business model assessment (overall, hold-to-collect business model, fair value categories) and next steps for their respective classification and measurement projects.

Tentative decisions made included:

IssueTentative decisions
Overall business model The boards provided additional clarifications on financial assets used in a business model assessment and how a business model and a change in the business model should be assessed.

The FASB converged its guidance on the reclassification date reflected in financial statements with the guidance in IFRS 9.

The IASB provided additional clarifications on business activities, relevant and objective information, and cash flows.
Hold-to-collect business model The boards clarified the application guidance for the hold-to-collect business model.
Fair value categories The boards will retain two fair value measurement categories (fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVPL)). In addition, the boards' clarified the application guidance for the FVOCI and FVPL measurement categories.
Next steps The boards will redeliberate other areas of their proposals at later meetings.

For more information, please see Deloitte’s Accounting Journal Entry or the meeting minutes on the FASB's Web site.

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