Aug 01, 2016
From the Financial Reporting Network
The FASB met on July 27 and discussed:
Clarifying the Definition of a Business. The Board discussed comments received on its proposed ASU, Clarifying the Definition of a Business.
Interest Income Associated with the Purchase of Callable Debt Securities.The Board instructed the staff to prepare a draft of a proposed ASU for vote by written ballot. The proposed ASU, which is expected to be issued in the third or fourth quarter, would change the amortization period for premium associated with most purchased callable debt securities, including municipal securities. The premium would be amortized to the first call date, instead of the maturity date. The Board received feedback that amortizing the premium to the maturity date may result in recognizing too much interest income before the borrower prepays the security, and may delay recognizing a loss for the unamortized premium. The Board also tentatively decided to conduct pre-agenda research about potential interest income disclosures in the notes to the financial statements.
Disclosure Framework: Disclosure Review—Inventory. The Board discussed potential changes to inventory disclosure requirements based on the concepts and decision questions in proposed Statement of Financial Accounting Concepts, Conceptual Framework for Financial Reporting–Chapter 8: Notes to Financial Statements.