FASB Issues Summary of Tentative Board Decisions at January Meetings
FASB published the tentative decisions taken at its Board meetings in January 2020. FASB discussed a summary of comments on seven financial instrument amendments and decided to finalize these amendments separately from the November 2019 proposed Accounting Standards Update related to codification improvements. FASB directed the staff to draft a final Accounting Standards Update for vote by written ballot. The key decisions taken at the meeting are related to leases (Topic 842), measurement of credit losses on financial instruments (Topic 326), and last-of-layer method under hedging.
Interactions of Topics 842 and 326—FASB affirmed its decision on interaction of Topics 842 and 326. The amendments in the proposed Update would align the contractual term to measure expected credit losses for a net investment in a lease under Topic 326 to be consistent with the lease term determined under Topic 842.
Interaction of Topic 326 and Subtopic 860-20 on sale of financial assets—FASB affirmed its decision on interaction of Topic 326 and Subtopic 860-20. The amendments in the proposed Update would clarify that when an entity regains control of financial assets previously sold and an allowance for credit losses should be recorded in accordance with Topic 326.
Last-of-layer method under Hedging—FASB decided not to add or amend the last-of-layer disclosure requirements in Topic 815 on derivatives and hedging, related to the addition of the proposed multiple-hedge model.
Related Links
- Tentative Decisions, January 29, 2020
- Tentative Decisions, January 22, 2020
- Meeting Handout, January 29, 2020 (PDF)
- Meeting Handout, January 22, 2020 (PDF)
Keywords: Americas, US, Banking, Securities, Accounting, Financial Instruments, Leases, Hedging, Credit Losses, Topic 326, Topic 842, Topic 815, Tentative Decisions, Accounting Standards Update, FASB
Featured Experts
Laurent Birade
Advises U.S. and Canadian financial institutions on risk and finance integration, CCAR/DFAST stress testing, IFRS9 and CECL credit loss reserving, and credit risk practices.
Blake Coules
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Previous Article
EIOPA Updates Risk Dashboard for Third Quarter of 2019Next Article
IAIS Publishes First Issue of Its Newsletter in 2020Related Articles
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
IOSCO Welcomes Work on Sustainability-Related Corporate Reporting
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
BoE Allows One-Day Delay in Statistical Data Submissions by Banks
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
ACPR Amends Reporting Module Timelines Under EBA Framework 3.2
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
APRA to Modernize Prudential Architecture, Reduces Liquidity Facility
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.
