Highlights from the FASB’s April 19 meeting
Apr 21, 2017
At its April 19, 2017, meeting, the FASB discussed its projects on (1) liabilities and equity and (2) revenue recognition of grants and contracts by not-for-profit entities.
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.
