Highlights from the FASB’s March 8 meeting
Mar 10, 2017
At its March 8, 2017, meeting, the FASB discussed its projects on (1) hedging, (2) consolidation reorganization and target improvements, and (3) related-party guidance for variable interest entities (VIEs).
Accounting for financial instruments — hedging
The Board tentatively decided to simplify certain aspects of the application of hedge accounting to (1) “sub-benchmark” interest rate risk hedges and (2) fair value hedges of interest rate risk of prepayable financial assets.
For more information, see the meeting minutes on the FASB’s Web site.
Consolidation reorganization and targeted improvements
The Board tentatively decided to draft a proposed ASU that would reorganize the consolidation guidance in ASC 810 and clarify the application of the concept “expected” for external review.
Consolidation: targeted improvements to related-party guidance for VIEs
The Board tentatively decided to (1) provide a private-company alternative that exempts private companies under common control from applying the VIE guidance in ASC 810, (2) remove the private-company alternative for leasing arrangements under common control from the VIE guidance, and (3) make certain amendments to the guidance for related parties under common control. The FASB directed its staff to draft a proposed ASU for external review.