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.
Topics: Emerging Issues Task Force "EITF", FASB, Financial Accounting Standards Board "FASB", Infrastructure, Proposed Accounting Standards Update, Service Concession Arrangements (Topic 853), U.S. GAAP
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.
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.