This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Highlights of the FASB’s March 28 meeting

  • FASB meeting Image

Mar 30, 2018

At its March 28, 2018, meeting, the FASB discussed its agenda prioritization as well as its projects on (1) hedging implementation, (2) targeted improvements to leases, and (3) financial performance reporting.

Agenda prioritization

The Board made decisions about whether to add the following potential projects to its agenda:

  • Determination of a highly inflationary economy — The Board decided not to add this project to its agenda.
  • Interest rate lock commitments — The Board decided not to add this project to its agenda.
  • Misalignment of “collections” definition — The Board decided to add this project to its agenda. Further, the definition of “collections” should include the concept of direct care, and the change to this definition should be applied prospectively. The Board directed its staff to draft a proposed Accounting Standards Update (ASU) for a vote by written ballot.
  • Cost capitalization for episodic television series — The Board decided to add to the EITF’s agenda a narrow-scope project on this topic.
  • Recognition under ASC 805 for an assumed liability in a revenue contract — The Board decided to add to the EITF’s agenda a project on this topic.

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

Financial instruments — Hedging implementation

The Board discussed implementation activities associated with ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities. The Board decided to add a narrow-scope project to its agenda to address certain aspects of the last-of-layer approach and to pursue potential technical improvements to clarify the guidance in ASC 815 on changes in the hedged risk of a cash flow hedge.

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

Targeted improvements to leases (ASC 842)

The Board discussed feedback received on its proposed ASU Leases (Topic 842): Targeted Improvements related to a practical expedient for lessors to elect not to separate lease and nonlease components when certain conditions are met. The Board directed its staff to draft a final ASU, subject to certain adjustments explained in Deloitte’s journal entry.

The Board also discussed other implementation requests received from stakeholders related to the presentation of sales taxes and property taxes and insurance included in lease contracts under ASU, Leases (Topic 842).

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

Financial performance reporting — Disaggregation of performance information

The Board discussed “the staff’s suggested terminology to describe the lines from the income statement to be the focus of the disaggregation, in particular lines that represent the cost of revenue and selling, general, and administrative expenses” as well “different approaches for describing the basis for disaggregating those lines.” The Board directed its staff to perform additional outreach with public business entities to get feedback on “(1) if, and how, an entity reviews the components of these lines for internal reporting purposes, (2) on what level the accounting information systems track the components, and (3) how the components are rolled up into consolidated lines.”

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.