Task Force Reaches Final Consensuses and Consensuses-for-Exposure
At the Emerging Issues Task Force’s (“Task Force”) meeting last week, the group announced final consensuses were reached on 12-F, “Pushdown Accounting”, and 13-G, “Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity.” During its final meeting of the year, the Task Force also reached consensuses-for-exposure on 14-A, “Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions”, and 14-B, “Fair Value Hierarchy Levels for Certain Investments Measured at Net Asset Value.”
The Financial Accounting Standards Board’s (“FASB”) plans to discuss the Task Force’s decisions when the organization meets early next month. If FASB ratifies either final consensus, then it will become authoritative upon inclusion to the Codification. If either consensus-for-exposure is ratified, then it will be open for comment.