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FASB Task Force Approves Proposed Guidance on Infrastructure Deals

An update to U.S. GAAP could provide clearer guidance on certain agreements between government entities and private-sector businesses. On March 16, the Financial Accounting Standards Board’s (“FASB”) Emerging Issues Task Force (“EITF”) unanimously approved an amendment which covers deals involving a private organization that operates public infrastructure. The operator normally pays a fee to the government, and in turn receives all, or a part of, the revenues. In some arrangements, the government entity pays the private company to operate the facility but collects a portion of the proceeds. The EITF-approved amendment is part of Proposed Accounting Standards Update No. EITF-16C. Read More.

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Recap of FASB October 5 Meeting

At its October 5 meeting, the Financial Accounting Standards Board (“FASB”) ratified the September 22 consensus reached on the following Emerging Issues Task Force (“EITF”) Issue: Issue No. 16-A, “Restricted Cash” In addition, the FASB ratified the consensus-for-exposure on the following EITF Issue: Issue No. 16-C, “Determining the Customer of the Operation Services in a Service Concession Arrangement” Separately, the FASB reached decisions on Topic 718, Compensation–Stock Compensation. The FASB agreed that if a change to the stock compensation award does not impact the overall current fair value, vesting requirements or classification, then entities are not required to apply modification accounting under. Read More.

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FASB Ratifies EITF Issue on Statement of Cash Flows

At its June 29 Board meeting, the Financial Accounting Standards Board (“FASB”) ratified the consensus reached at its June 10 Emerging Issues Task Force meeting regarding Issue No. 15-F, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments.” In particular, the FASB reached a consensus on the following issues: Debt Prepayment or Debt Extinguishment Costs Settlement of Zero-Coupon Debt Instruments and Other Debt Instruments with Insignificant Coupon Interest Rates Contingent Consideration Payments Made after a Business Combination Proceeds from the Settlement of Insurance Claims Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance. Read More.

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Conclusions from EITF’s June 10th Meeting

The following are the conclusions reached at last week’s Emerging Issues Task Force (“EITF”) meeting: Final Consensus: 15-F, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments.” Consensus-for-Exposure: 16-B, “Employee Benefit Plan Master Trust Reporting.” The Financial Accounting Standards Board (“FASB”) will likely discuss these conclusions at a meeting later this month. If the consensus-for-exposure receives FASB approval, it will be issued for comment. If the final consensus receives FASB approval, it will become authoritative upon its inclusion in the FASB Codification. The EITF’s next meeting is scheduled for Thursday, July 21.

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EITF Reaches Consensus-for-Exposure on Restricted Cash

At its March 3rd meeting, the Emerging Issues Task Force reached a consensus-for-exposure in regard to 16-A, “Restricted Cash.” The Financial Accounting Standards Board is expected to discuss this consensus-for-exposure at a meeting later this month. If ratified, the consensus-for-exposure will be open for comment. While no final consensuses were reached at the meeting, the EITF also discussed 15-F, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments.” The EITF will hold its next meeting on Thursday, May 12th.

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Notice of FASB Open Meetings for March 2nd and 3rd

This week, the Financial Accounting Standards Board (“FASB”) has two meetings scheduled at its offices in Norwalk, Connecticut. Available via video and/or audio webcast on the standard setter’s Web site and YouTube channel, the meetings are as follows: Wednesday, March 2nd: FASB Board Meeting; begins at 9:00 a.m., EST. Topics include the NFP financial statement project as well as the disclosure framework. Thursday, March 3rd: Emerging Issues Task Force Meeting; begins at 8:30 a.m., EST. This meeting will discuss Issue No. 16-A, “Restricted Cash.” Further meeting and registration details are available on the FASB Notice of Meetings page .

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