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Highlights from the FASB’s November 19 meeting

  • FASB meeting Image

Nov 20, 2014

At its November 19, 2014, meeting, the FASB discussed its projects on (1) insurance, (2) the conceptual framework, and (3) the disclosure framework.

Insurance — targeted improvements to the accounting for long-duration contracts

The FASB debated what discount rate an insurer should use when measuring a contract that, under existing GAAP, is discounted by using an expected investment yield. The Board tentatively decided that the discount rate used should be “based on a portfolio of high-quality, fixed-income investments.”

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

Conceptual framework — measurement

The FASB reviewed its process for creating standards on determining changes in carrying amounts. The Board did not make any technical decisions but directed the staff to continue researching the concepts related to this process.

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

Disclosure framework — Board’s decision process

The FASB tentatively decided to modify its description of “materiality” in FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting, by:

  • Explaining that “materiality is a legal concept that varies by jurisdiction.” However, the concepts statement “will include the U.S. Supreme Court’s description.”
  • Retaining “the notion that materiality is an entity-specific judgment and that it is different from relevance, which is assessed by the Board.”

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

Correction list for hyphenation

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