FASB Issues Summary of Tentative Board Decisions at January Meetings

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