FASB Publishes Summary of Emerging Issues Task Force Meeting
FASB published a summary of the Emerging Issues Task Force, or EITF, meeting that was held on November 07, 2019. The meeting included discussions on clarifying the interactions among Topic 321 on investments in equity securities, Topic 323 on investments on equity method and joint ventures, and Topic 815 on derivatives and hedging.
The Task Force reached a consensus that an entity should consider observable transactions that would require the investor to either apply or discontinue the equity method of accounting for applying the measurement alternative under Topic 321, immediately before applying or on discontinuing the equity method. The Task Force also reached a consensus that, for applying paragraph 815-10-15-141(a), an entity should not consider whether, on the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method or the fair value option in accordance with Topic 825 on financial instruments. The Task Force also reached a consensus on other items related to transition, transition disclosures, special consideration for nonpublic entities, effective date, and early adoption.
Related Link: Meeting Update
Keywords: Americas, US, Accounting, Banking, Securities, Derivatives and Hedging, Financial Instruments, Topic 321, Topic 815, Topic 323, FASB
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