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Highlights from the FASB’s May 14 meeting

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May 15, 2014

At its May 14, 2014, meeting, the FASB discussed its projects on (1) classification and measurement of financial instruments and (2) financial statements of not-for-profit entities.


Financial instruments — classification and measurement

The FASB continued redeliberating its proposed Accounting Standards Update Recognition and Measurement of Financial Assets and Financial Liabilities and tentatively decided:

  • That “the assessment of a valuation allowance for a deferred tax asset related to an available-for-sale debt security should be made in combination with the entity’s other deferred tax assets.”
  • Not to provide guidance on recognizing and measuring pools of similar financial assets.
  • To “retain current U.S. GAAP on accounting for loan commitments, revolving lines of credit, and commercial letters of credit.”
  • To “retain current U.S. GAAP for recognition and measurement of foreign currency gains and losses on debt securities classified as available for sale.”

The FASB did not make any decisions regarding (1) “whether parameters could be developed to define strategic equity investments that would be eligible for available-for-sale classification” and (2) “the application of the one-step impairment model to equity method investments and equity investments that qualify for the practicability exception.” However, the Board asked the staff to further research these topics.

For more information, see the related Deloitte Accounting Journal and the meeting minutes on the FASB's Web site.


Financial statements of not-for-profit entities

The FASB continued discussing the requirements related to not-for-profit entities’ presentation and disclosure of (1) investment expenses and (2) an intermediate measure of operations.

For more information, see the meeting minutes on the FASB's Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.