FASB Publishes Summary of FASAC Meeting in June 2019
FASB published a summary of the quarterly meeting of the Financial Accounting Standards Advisory Council (FASAC). The key topics discussed at the meeting include implementation of leases and segment reporting. FASAC members also provided their views on the FASB’s research project, focusing on the recent major standards including those on leases, hedging, and credit losses. Overall, the Council members expressed diverse views on the philosophy for effective dates for major projects. Council members encouraged FASB to consider the need for (and time lag associated with) staggered effective dates on a standard-by-standard basis, rather than establishing an inflexible time lag for private companies and others.
FASAC members participated in the first of a series of discussions on the FASB’s post-effective date assessment of costs and benefits of the leasing standard. This session focused on public companies’ initial and recurring costs of transitioning. Some Council members noted that, although adoption of the standard had an insignificant overall impact on some companies’ financial statements, the initial level of effort and cost to apply the standard was somewhat higher than originally anticipated, primarily because of needed systems changes or new systems.
Some members also commented on some of the benefits of adoption to their companies. These include better centralized processes to manage their leases, improved internal consistency of leases, and increased ability to manage an organization’s asset base and lease obligations. Expected recurring costs include costs to capture the required data, sustain internal controls, and preserve systems. Other members, particularly investors and users, are beginning to consider the resulting changes in companies’ financial statements and how those changes impact their analysis or models. Those members indicated that additional time is needed to assess the benefits of change in the leases standard. FASAC members also discussed implementation issues related to the incremental borrowing rate, certain disclosures, and related parties.
Finally, FASAC members discussed potential improvements to segment reporting disclosures, centering on the approach to requiring additional disclosure by reportable segment. Overall, FASAC members preferred a principles-based approach to requiring additional disclosure by reportable segment, due to the wide variety of industries. FASAC members, particularly investors and users, expressed support for that approach and explained that having consistency over time for an organization could be more useful than comparability between organizations.
Related Links
Keywords: Americas, US, Accounting, Banking, Securities, IFRS 9, Hedging, Leases Standard, IFRS 16, Reporting, FASAC, FASB
Featured Experts

Masha Muzyka
CECL, IFRS 9, and IFRS 17 expert; credit risk and insurance risk specialist; strategic planning and credit analytics solutions consultant

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.

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Previous Article
APRA Welcomes Capability Review Report and Outlines Action PlanRelated Articles
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.
DNB Publishes Multiple Reporting Updates for Banks
DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.
NBB Sets Out Climate Risk Expectations, Issues Reporting Updates
The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting
EBA Updates Address Securitization Standards and DGS Guidelines
The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.
FSB Publishes Letter to G20, Sets Out Work Priorities for 2023
The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023