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Highlights from the FASB’s May 10 meeting

  • FASB meeting Image

May 12, 2017

At its May 10, 2017, meeting, the FASB discussed its agenda prioritization as well as its projects on (1) revenue recognition, (2) leases, (3) intangibles, and (4) liabilities and equity.

Agenda prioritization

The Board decided (1) to add to the EITF’s agenda a project on a customer’s accounting for implementation costs incurred in a cloud computing arrangement that is considered a service contract and (2) not to undertake a project on sponsor-paid administrative expenses and investment fees.

For more information, see Deloitte's related journal entry as well as the tentative Board decisions on the FASB’s Web site.

Revenue recognition

The Board discussed implementation activities related to its May 2014 ASU, Revenue From Contracts With Customers, and other revenue-related ASUs. No decisions were made.

For more information, see the tentative Board decisions on the FASB’s Web site.

Leases

The Board discussed inquiries and feedback received on its new leases standard, deciding that no further standard-setting is needed with respect to (1) whether a pipeline lateral is a lease and (2) the transition guidance in ASC 842. Further, the Board directed the FASB staff to perform outreach related to whether easements are within the scope of ASC 842.

For more information, see Deloitte's related journal entry as well as the tentative Board decisions on the FASB’s Web site.

Intangibles

The Board discussed research related to how the accounting for intangibles could be improved. No decisions were made.

For more information, see the tentative Board decisions on the FASB’s Web site.

Liabilities and equity — targeted improvements

The FASB finished redeliberating its proposed ASU, I. Accounting for Certain Financial Instruments With Down Round Features, and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests With a Scope Exception. Specifically, the Board decided that an entity that presents earnings per share (EPS) should adjust basic EPS when a down-round feature in an equity-classified freestanding financial instrument is triggered. The Board directed the staff to draft a final ASU for a vote by written ballot.

For more information, see the tentative Board decisions on the FASB’s Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.