Today, the FASB announced that it will add two new issues to the FASB agenda related to investment properties and balance sheet offsetting. In addition, the FASB will add an issue to the EITF agenda related to accounting for multiple foreign currency exchange rates.

Investment Properties

This project will explore whether to permit or require that investment properties be measured at fair value through earnings. The IASB’s standard on investment property, IAS 40, allows entities to elect to measure investment property at fair value or cost. Recently, the IASB decided to exclude investment property measured at fair value from the scope of the upcoming lease standard. The FASB’s new project will also consider whether a lease should be factored into the fair value of a leased investment property.

The FASB also announced that EITF Issue No. 09-D, “Application of Topic 946, Financial Services—Investment Companies, by Real Estate Investment Companies,” will not be discussed at the March 18, 2010, EITF meeting, since the new FASB project may also include consideration of issues that are currently part of Issue 09-D.

Balance Sheet Offsetting

This project will review the current criteria for offsetting in the balance sheet (codified in ASC 210-20) and consider exceptions to those criteria.

Accounting for Multiple Foreign Currency Exchange Rates

The objective of this project is to determine whether, in an economy with multiple exchange rates (such as Venezuela), it is appropriate to use different exchange rates for (1) remeasurement of a foreign-currency-denominated transaction and (2) translation of a foreign subsidiary’s financial statements. The EITF will also consider appropriate disclosures for such situations.