AccountingLink

    EITF Update

    13 November 2015

    EITF Update - November 2015
    The EITF reached final consensuses on recognition of breakage for prepaid stored-value products, effect of derivative contract novations on existing hedge accounting relationships and contingent put and call options in debt instruments. The EITF also reached a consensus-for-exposure on the classification of certain cash receipts and cash payments on the statement of cash flows. The EITF discussed but didn’t reach a consensus-for-exposure on the cash flow classification of restricted cash. It plans to discuss this topic at a later date.

    18 September 2015

    EITF Update - September 2015
    The EITF discussed but didn’t reach a final consensus or consensus-for-exposure on recognition of breakage for prepaid stored-value cards and statement of cash flows: classification of certain cash receipts and cash payments.

    19 June 2015

    EITF Update - June 2015
    The EITF reached final consensuses on the application of the normal purchases and normal sales scope exception to certain electricity contracts within nodal energy markets and employee benefit plan simplifications. The EITF reached consensuses-for-exposure on the effect of derivative contract novations on existing hedge accounting relationships and contingent put and call options in debt instruments. The EITF also discussed but didn’t reach a consensus-for-exposure on the classification of certain cash receipts and cash payments on the statement of cash flows.

    20 March 2015

    EITF Update - March 2015
    The EITF reached final consensuses on effects on historical earnings per unit of master limited partnership dropdown transactions and disclosures for investments in certain entities that calculate net asset value per share (or its equivalent). The EITF also reached consensuses-for-exposure on the application of the normal purchases and normal sales scope exception to certain electricity contracts within nodal energy markets, recognition of breakage for prepaid stored-value cards and employee benefit plan simplifications.

    19 September 2014

    EITF Update - September 2014
    The EITF reached final consensuses on pushdown accounting and determining whether the host contract in a hybrid financial instrument issued in the form of a share is more akin to debt or to equity. The EITF also reached consensuses-for-exposure on effects on historical earnings per unit of master limited partnership dropdown transactions and fair value hierarchy levels for certain investments measured at net asset value.

    13 June 2014

    EITF Update - June 2014
    The EITF reached final consensuses on measuring the financial assets and financial liabilities of a consolidated financing entity and reclassification of certain government insured residential mortgage loans upon foreclosure by a creditor. The EITF also discussed but didn’t reach a final conclusion on how to determine whether the host contract in a hybrid financial instrument issued in the form of a share is more akin to debt or to equity.

    14 March 2014

    EITF Update - March 2014
    The EITF reached a final consensus on accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The EITF reached a consensus-for-exposure on the recognition of new accounting basis (pushdown) in certain circumstances. In addition, the EITF discussed measuring the financial assets and the financial liabilities of a consolidated financing entity and determining whether the host contract in a hybrid financial instrument issued in the form of a share is more akin to debt or to equity, but didn’t reach final conclusion.

    15 November 2013

    EITF Update - November 2013
    The EITF reached final consensuses on measuring the financial assets and financial liabilities of a consolidated financing entity, accounting for service concession arrangements, accounting for investments in affordable housing projects and reclassification of residential real estate collateralized consumer mortgage loans upon foreclosure. The EITF reached a consensus-for-exposure on the classification of certain government insured residential mortgage loans upon foreclosure by a creditor. The EITF also discussed but didn’t reach a final conclusion about whether, when and how public and nonpublic companies should establish a new accounting basis in an acquired entity’s standalone financial statements.

    16 September 2013

    EITF Update - September 2013
    The EITF reached consensuses-for-exposure on determining whether a performance target that can be achieved after the requisite service period is a performance condition or a condition that affects the grant-date fair value of the awards and determining whether the host contract in a hybrid financial instrument is more akin to debt or equity. In addition, the EITF discussed the accounting for investments in affordable-housing projects but didn’t reach a final conclusion.

    12 June 2013

    EITF Update - June 2013
    The EITF reached final consensuses on the inclusion of the federal funds effective swap rate as a benchmark interest rate for hedge accounting purposes and the presentation of an unrecognized tax benefit when a net operating loss carryforward or tax credit carryforward exists. The EITF also reached consensuses-for-exposure on accounting for the difference between the fair value of the assets and the fair value of the liabilities of a consolidated collateralized financing entity, accounting for service concession arrangements and reclassification of collateralized mortgage loans upon a troubled debt restructuring. In addition, the EITF discussed whether a performance target that can be met after the requisite service has been provided by the employee is a vesting condition or a condition that affects the grant-date fair value of a share-based payment.

    15 March 2013

    EITF Update - March 2013
    The EITF reached two final consensuses on recognition and measurement of services received by a not-for-profit entity from personnel of an affiliated entity for which the affiliate does not charge the recipient not for profit and accounting for the difference between the fair value of the assets and the fair value of the liabilities of a consolidated collateralized financing entity. The EITF also reached a consensus-for-exposure on the accounting for investments in qualified affordable housing projects and discussed pushdown accounting but did not reach any conclusions.

    18 January 2013

    EITF Update - January 2013
    The EITF reached final consensuses on the following issues: (a) the accounting for a cumulative translation adjustment in sales within a foreign entity and sales of an investment in a foreign entity and (b) the recognition and measurement of obligations subject to joint and several liability for which the total amount of the obligation is fixed at the reporting date. The EITF also reached consensuses-for-exposure on two issues.