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Highlights from the FASB’s January 28 meeting

  • FASB meeting Image

Jan 30, 2015

At its January 28, 2015, meeting, the FASB discussed its projects on (1) simplifying the measurement date for plan assets, (2) simplifying the balance sheet classification of debt issuance cost, and (3) consolidation.

Simplifying the measurement date for plan assets

The FASB discussed comments it received on its proposed ASU, Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets, and tentatively decided to:

  • Affirm the proposed practical expedient.
  • Affirm that “an employer using the practical expedient should be required to adjust the funded status for contributions and other significant events . . . occurring between the alternative measurement date and its fiscal year-end.”
  • Extend the practical expedient to remeasurements of significant events.
  • Exclude employee benefit plans from the scope of the project and request the EITF to consider the measurement date practical expedient as part of its targeted improvements to employee benefit plan accounting.
  • Propose effective date and transition requirements.

The Board directed the staff to draft a final ASU for vote by written ballot. For more information, see the meeting mintues on the FASB’s Web site.

Simplifying the balance sheet classification of debt issuance cost

The FASB discussed alternative principles for determining the classification of debt within a classified balance sheet and tentatively decided to propose a new, principles-oriented approach for classifying debt as either current or noncurrent in an entity’s balance sheet. The approach would replace existing requirements, which have been criticized for their complexity.

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

Consolidation

The FASB received an update from its staff on the status of the consolidation project, including the results of the staff’s outreach with various constituents in connection with the Board’s decisions at its December 2014 meeting.

The Board directed the staff to draft a final ASU for vote by written ballot. The final ASU is expected to be issued in February 2015. For more information, see the related Deloitte journal entry and the meeting minutes on the FASB’s Web site.

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