Liabilities and equity — targeted improvements

The Board tentatively decided that (1) a “down-round” feature should not preclude equity classification for an instrument that contains the feature and (2) public business entities should recognize the effect of the trigger of a down-round feature as an adjustment to earnings per share. The Board asked the staff to perform additional research.

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

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

The Board discussed issues related to its forthcoming proposed ASU, including (1) right of return or a release of the promisor from its obligation to transfer assets, (2) accounting from the resource provider’s perspective, (3) disclosures, (4) transition, and (5) effective date and early adoption.

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