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Highlights from the FASB’s June 21 meeting

  • FASB meeting Image

Jun 23, 2017

At its June 21, 2017, meeting, the FASB discussed its projects on (1) leases, (2) revenue recognition, (3) recognition and measurement of financial instruments, (4) consolidation, and (5) disclosure review — inventory.

Leases

The Board discussed 16 proposed technical corrections and improvements to its new leases standard as well as a lessor-specific transition issue associated with the relationship between the adoption of the new leases standard and the adoption of the new revenue standard.

For more information, see Deloitte’s journal entry as well as the meeting minutes on the FASB’s Web site.

Revenue recognition

The Board answered an implementation question related to the allocation of contract consideration to revenue and lease components, noting that it did not intend for an entity to revisit the allocation of contract consideration to lease components (within the scope of ASC 840, Leases) when it adopts ASU 2014-09, Revenue From Contracts With Customers. No decisions were made.

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

Financial instruments — recognition and measurement

The Board discussed technical corrections and improvements to the amendments in ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, and directed its staff to draft a proposed ASU for a vote by written ballot that includes the technical corrections to (1) ASU 2016-02, Leases, and (2) ASU 2016-01.

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

Consolidation

The Board discussed comments received from external reviewers on a draft of its proposed ASU on the reorganization of the guidance in ASC 810, Consolidation. In addition to discussing remaining issues, including costs and benefits, the FASB affirmed the decision it made on transition requirements at its March 8, 2017, meeting. The Board directed its staff to begin drafting a proposed ASU for a vote by written ballot.

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

Disclosure review — inventory

The Board discussed comments received on its January 2017 proposed ASU, Disclosure Framework — Changes to the Disclosure Requirements for Inventory. No decisions were made. The Board directed its staff to perform additional outreach and research on the proposed disclosure requirements related to changes in the inventory balance.

For more information, see the meeting minutes 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.