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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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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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