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Highlights from the FASB’s October 29 meeting

  • FASB meeting Image

Oct 31, 2014

At its October 29, 2014, meeting, the FASB discussed its projects related to impairment and extraordinary items.

 

Financial instruments — impairment

The FASB discussed credit impairment disclosures and the scope of the project and tentatively decided to:

  • Retain the requirement that an entity must disclose information that “influenced management’s current estimate of expected credit losses,” including forward-looking information used to record the estimate of expected credit losses.
  • Require an entity to continue to disclose its write-off policy for uncollectible receivables.
  • Not require an entity to disclose the period over which it performed a reasonable and supportable forecast.
  • Retain existing requirements for U.S. GAAP nonaccrual policy disclosures.
  • Require qualitative disclosures for collateralized financial assets to only apply to collateral-dependent financial assets.
  • Require an entity to disclose past-due information on held-to-maturity and held-for-investment financial assets.

In addition, the Board made tentative decisions about which types of debt instruments would be included within the scope of the proposed current expected credit loss model.

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

 

Simplifying income statement presentation by eliminating the concept of extraordinary items

The FASB affirmed its decision to remove extraordinary items from U.S. GAAP and voted to issue final guidance in an ASU for this project. The Board tentatively decided to allow either prospective or retrospective application of the guidance (prospective application will require disclosure of “both the nature and amount of an item included in income from continuing operations after adoption that relates to an adjustment of an item previously separately classified and presented as an extraordinary item before adoption, if applicable”). The ASU will be effective for periods beginning after December 15, 2015, for both public and private entities. Early adoption is permitted when the guidance is applied from the beginning of the reporting period in the year of adoption.

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.