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Highlights of the FASB’s November 14 meeting

  • FASB meeting Image

Nov 15, 2018

At its November 14, 2018, meeting, the FASB discussed its projects on (1) nonemployee share-based payments, (2) disclosures by business entities about government assistance, and (3) disclosure framework review — income taxes. In addition, the staff and Board discussed the financial reporting effects of the Tax Cuts and Jobs Act, and the Board made an agenda request.

Codification improvements — nonemployee share-based payments

The Board dis­cussed proposed modifications to ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, and made tentative decisions related to transition and its cost-benefit analysis. In addition, the Board decided to add a project to clarify the guidance on share-based payments made as consideration payable to a customer. The Board directed its staff to begin drafting a proposed ASU for a vote by written ballot.

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

Disclosures by business entities about government assistance

The Board dis­cussed its proposed ASU Disclosures by Business Entities About Government Assistance and made tentative decisions related to the scope, application, and effective date of the proposed amendments. The Board directed its staff to begin drafting a final ASU.

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

Disclosure framework: disclosure review — income taxes

The Board dis­cussed its pro­posed ASU Disclosure Framework — Changes to the Disclosure Requirements for Income Taxes and made tentative decisions related to:

  • Potential new disclosures as a result of the Tax Cuts and Jobs Act.
  • Changes in tax law.
  • Disaggregation of pretax income (or loss) from continuing operations, income tax expense (or benefit), and income taxes paid.
  • Indefinitely reinvested foreign earnings.
  • Cash, cash equivalents, and marketable securities.
  • Unrecognized tax benefits.
  • Valuation allowances.
  • Effective tax rate reconciliation.
  • Carryforward disclosures for public business entities and entities other than public business entities.
  • Interim cash taxes paid.

The Board di­rected its staff to begin draft­ing a proposed ASU on the decisions made, other than those on disclosures.

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

Financial reporting effects of the Tax Cuts and Jobs Act

The staff gave the Board  an update on monitoring effects related to the financial reporting implications of tax reform.

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

Agenda request

The Board tentatively decided to amend ASU 2016-13 to allow entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option for financial instruments that were previously recorded at amortized cost and that are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. An entity would make this election on an instrument-by-instrument basis. The Board di­rected its staff to begin draft­ing a proposed ASU for a vote by written ballot.

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

Correction list for hyphenation

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