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Highlights from the FASB’s June 15 meeting

  • FASB meeting Image

Jun 17, 2016

At its June 15, 2016, meeting, the FASB dis­cussed its pro­jects on (1) intra-entity asset transfers (income taxes), (2) improvements to the accounting for nonemployee share-based payments, and (3) revenue recognition of grants and contracts by not-for-profit entities.

Accounting for income taxes — intra-entity asset transfers

The FASB redeliberated its proposed ASU Intra-Entity Asset Transfers and decided to retain the proposed amendment to remove the exception in ASC 740 that prohibits the immediate recognition of the tax consequences (both current and deferred) of intra-entity asset transfers, except for transfers of inventory. The Board also made tentative decisions related to the proposal’s transition and effective date.

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 as well as the meeting minutes on the FASB’s Web site.

Nonemployee share-based payments

The FASB addressed potential transition methods related to the tentative decisions made at its May 4, 2016, meeting and discussed which disclosures should be required as part of its project on improving the accounting for share-based payment arrangements with nonemployees. For more information, see Deloitte’s related journal entry as well as the meeting minutes on the FASB’s Web site.

Revenue recognition of grants and contracts by not-for-profit entities

The FASB discussed how it could improve and clarify existing guidance on characterizing grants and similar contracts with governmental agencies and others as (1) reciprocal transactions (exchanges) or (2) nonreciprocal transactions (contributions). For more in­for­ma­tion, see Deloitte’s related journal entry as well as the meeting minutes on the FASB’s Web site.

Correction list for hyphenation

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