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Highlights from the FASB’s June 18 meeting

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Jun 23, 2014

At its June 18, 2014, meeting, the FASB discussed its projects related to (1) the conceptual framework, (2) accounting for fees paid in a cloud computing arrangement, and (3) not-for-profit financial statements. In addition, the FASB jointly met with the IASB to discuss the leases project.


Conceptual framework

In establishing priorities for its conceptual framework project, the FASB decided that it would first tackle presentation and measurement and then move on to liability-equity distinction.

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


Customer’s accounting for fees in a cloud computing arrangement

The FASB tentatively decided to include the guidance in ASC 985-605-55-121 through 55-123 in the scope of ASC 350-40 and that entities would apply that guidance to cloud computing arrangements to determine whether a contract includes a software license or instead is a service contract.

In addition, the Board directed the staff to draft a proposed ASU.

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


Financial statements of not-for-profit entities

The FASB reaffirmed the tentative decision reached at its May 14, 2014, meeting, to “require external and direct internal investment expenses to be netted against the investment return”; however, it tentatively decided to “remove the disclosure requirement existing in current GAAP about netted investment expenses for all NFP entities.” The Board also made tentative decisions related to improving note disclosures for not-for-profit entities.

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



The FASB and IASB continued redeliberating their exposure draft on leases and made tentative decisions related to subleases, lessee balance sheet presentation, and cash flow presentation.

For details, see the related Deloitte Accounting Journal entry and 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.