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Highlights of the December 2018 FASAC meeting

  • FASAC meeting Image

Dec 21, 2018

At its December 13, 2018, meeting, the FASB’s Financial Accounting Standards Advisory Council (FASAC) discussed (1) a technology case study, (2) distinguishing liabilities from equity (including convertible debt), and (3) the relative benefits and costs of disclosures in GAAP.

Technology case study

The FASAC discussed the impact of emerging technologies on financial reporting. As noted in the meeting recap on the FASB’s Web site, FASAC members:

  • “Explained how emerging technology has helped to create process efficiencies.”
  • “Discussed the timeframes and complexities with legacy systems.”
  • “Emphasized the importance of managing high-quality data and controls over the data.”

Distinguishing liabilities from equity (including convertible debt)

FASAC members provided feedback on the FASB’s project related to distinguishing liabilities from equity (including convertible debt). Specifically, they discussed (1) the disclosure of earnings-per-share treatment of convertible instruments and (2) the derivatives scope exception.

Relative benefits and costs of disclosures in GAAP

FASAC members noted that (1) some of the costliest disclosures are not always the most useful and (2) relevant disclosures may change over time or be dependent on the user. They supported continued research on this topic.

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

Correction list for hyphenation

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