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Highlights from the FASB’s December 16 meeting

  • FASB meeting Image

Dec 18, 2015

At its December 16, 2015, meeting, the FASB (1) added two projects to its agenda, (2) discussed the conceptual framework, and (3) endorsed the PCC consensus-for-exposure on identifiable intangible assets. In addition, the FASB (jointly with the IASB) continued to discuss principal-versus-agent guidance related to the revenue standard.

New projects on FASB’s agenda

The FASB decided to add two projects to its agenda:

  • Improving the accounting for nonemployee share-based payment arrangements — During previous deliberations of its overall project on share-based payment simplifications, the Board decided that potential improvements to the nonemployee model could be broader and take longer to complete than other simplification projects. As a result, the Board decided to reconsider the accounting for nonemployee share-based payments as part of a separate research project. For more information, see Deloitte’s related journal entry.
  • Clarifying when not-for-profit entities should consolidate limited partnership (or similar entity) after the adoption of ASU 2015-02 — The FASB staff presented two alternatives for potential consideration, and Board members directed the FASB staff to further research both alternatives. For more information, see Deloitte’s related journal entry.

The FASB decided not to add to its agenda projects on (1) the consolidation of variable interest entities by financial guaranty insurance entities that are subject to specialized accounting in ASC 944 or (2) simplifying the accounting related to attributing net income or loss and comprehensive income or loss to a parent company and noncontrolling interest.

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

Conceptual framework — measurement

The Board discussed how to determine initial carrying amounts and changes in carrying amounts. For more information, see the meeting minutes on the FASB’s Web site.

FASB endorsement of PCC consensus-for exposure

The FASB has endorsed the PCC’s consensus-for-exposure that removes the effective dates of four Accounting Standards Updates issued in 2014. The FASB staff will prepare a draft of a proposed ASU for a vote by written ballot. For more information, see the meeting minutes on the FASB’s Web site.

Revenue recognition — principal-versus-agent considerations (reporting revenue gross versus net)

The FASB and IASB discussed feedback received on their proposals to clarify certain aspects of the principal-versus-agent guidance in their new revenue standard (ASC 606 and IFRS 15). Respondents generally supported the boards’ efforts to improve the understandability and operability of the standard’s principal-versus-agent guidance. During the meeting, the boards completed their redeliberations and the FASB directed its staff to begin drafting a final ASU for a vote by written ballot.

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

Correction list for hyphenation

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