On The Horizon: FASB acts on two Task Force issues at Oct. 10 meeting

Content FASB

Highlights from Oct. 10 meeting posted
Taxonomy implementation guide and taxonomy improvements proposed
PCC holds Oct. 9 meeting

AICPA schedules Auditing Standards Board meeting PCAOB launches new research and standard-setting project pages

FASBHighlights from Oct. 10 meeting postedAll decisions reached at Board meetings are tentative and may be changed at future meetings. 

The Board met on Oct. 10 to discuss two consensuses-for-exposure reached at the Sept. 27 Emerging Issues Task Force (EITF) meeting, and took the actions summarized below. 

Issue No 18-A, ‘Recognition under Topic 805 for an Assumed Liability in a Revenue Contract’

The Board ratified the Task Force’s consensus-for-exposure on recognizing the assumed contract liability in a revenue contract, and also authorized the FASB staff to prepare a Discussion Paper in the form of an Invitation to Comment to obtain input from stakeholders about measuring the contract liability and other topics related to the consensus-for-exposure. 

The Board directed the staff to draft a proposed ASU reflecting the Task Force’s consensus-for-exposure and tentatively decided to expose the proposed ASU and the Invitation to Comment concurrently, with the comment period ending April 30, 2019. 

Issue No 18-B, ‘Improvements to Accounting for Episodic Television Series’

The Board ratified the Task Force’s consensus-for-exposure on accounting for episodic television series, and directed the staff to draft a proposed ASU reflecting this consensus-for-exposure. It tentatively decided that the comment period for the proposed ASU would be 30 days. 

Refer to the Oct. 11 On the Horizon for a recap of the Task Force’s Sept. 27 meeting.

Taxonomy implementation guide and taxonomy improvements proposedThe FASB staff issued a proposed GAAP Financial Reporting Taxonomy Implementation Guide, Financing Receivable and Current Expected Credit Loss Disclosures. The proposed guide provides examples that would help users of the taxonomy understand how the modeling for disclosures related to financing receivables and credit losses is structured within the taxonomy. 

Comments on the proposed implementation guide are due Nov. 5. 

The FASB staff also issued proposed taxonomy improvements related to the proposed ASU, Debt (Topic 470): Simplifying the Classification of Debt in a Classified Balance Sheet

Comments on these proposed taxonomy improvements are due Nov. 12. 

The proposed implementation guide and the proposed taxonomy improvements can be found on the FASB’s website. 

PCC holds Oct. 9 meetingThe PCC reaches official positions only after extensive due process and deliberations. The PCC’s consensuses and consensuses-for-exposure are subject to ratification by the FASB.

During the Private Company Council (PCC) meeting on Oct. 9, the PCC members provided input on several FASB projects. The PCC will post a recap of this meeting at a later date.

The next PCC meeting will be held on Dec. 11. 

AICPA schedules Auditing Standards Board meetingThe AICPA’s Auditing Standards Board (ASB) is meeting in Cincinnati, Ohio, Oct. 15-17. The ASB is expected to discuss auditor reporting, among other topics.

PCAOB launches new research and standard-setting project pagesThe Public Company Accounting Oversight Board (PCAOB) has published new web pages with information on its research and standard-setting projects, including the project’s objective, background, and status. These pages, which replace the quarterly “Standard-Setting Update,” were developed to promote accessibility and transparency into these PCAOB projects. Interested parties may also sign up to receive email updates.

© 2018 Grant Thornton LLP, U.S. member firm of Grant Thornton International Ltd. All rights reserved. This Grant Thornton LLP On the Horizon provides information and comments on current accounting and SEC reporting issues and developments. It is not a comprehensive analysis of the subject matter covered and is not intended to provide accounting or other advice or guidance with respect to the matters addressed in this publication. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this publication. For additional information on topics covered in this publication, contact a Grant Thornton client-service partner.