Emerging Issues Task Force (EITF)

Website: www.fasb.org

The mission of the EITF is to assist the FASB in improving financial reporting through the timely identification, discussion, and resolution of financial accounting issues within the framework of the FASB Accounting Standards CodificationTM.

Recent Developments – Past 90 days

PwC's EITF observer

EITF observer: A meeting synopsis - March 2014
PwC - 03/17/2014
The EITF met on March 13, 2014 to discuss four issues. PwC's EITF observer provides you an insightful summary of decisions reached and the changes affecting GAAP.

EITF observer: A meeting synopsis - November 2013
PwC - 11/19/2013
The EITF met on November 14, 2013 to discuss six issues. PwC's EITF Observer provides you an insightful summary of decisions reached and the changes affecting GAAP.

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EITF final meeting minutes

Final Minutes of the November 14, 2013, EITF Meeting
The FASB staff has published the final minutes of the November 14 EITF meeting. At the meeting, the Task Force reached final consensuses on four issues affecting consolidated collateralized financing entities, service concession arrangements, low income housing tax credit investments, and collateralized consumer residential mortgage loans. A consensus-for-exposure was reached on an issue pertaining to the classification of certain government guaranteed residential mortgage loans upon foreclosure by a creditor. Discussions also continued on an issue affecting the application of the pushdown basis of accounting.

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EITF issue summaries

EITF - 01/22/2014
Issue 13-F: "Classification of Certain Government Insured Residential Mortgage Loans upon Foreclosure by a Creditor"
Currently, there is diversity in practice related to creditors' classification and disclosure of foreclosed government insured residential mortgage loans. This Issue is intended to reduce that diversity by addressing the classification of government guaranteed loans directly held by the creditor.

EITF - 8/30/2013
Issue 13-G: "Determining Whether the Host Contract in a Hybrid Financial Instrument Is More Akin to Debt or to Equity"
This Issue addresses: (1) whether to (a) consider all of an instrument's terms and embedded derivative features (that is, use a whole-instrument approach), (b) exclude the embedded derivative feature being evaluated (that is, use a chameleon approach), or (c) exclude all embedded derivative features (that is, use a pure-host approach) when determining the nature of the host contract. (2) How an entity should determine the nature of the host contract when an investor in a convertible preferred equity instrument holds a non-contingent, fixed-price redemption option.

EITF - 5/31/2013
Issue 13-E: "Reclassification of Collateralized Mortgage Loans upon a Troubled Debt Restructuring"
This Issue addresses when a creditor should be considered to have taken physical possession of a real estate property collateralizing a loan, such that the loan should be reclassified (for example, to OREO).

EITF - 5/30/2013
Issue 13-D: "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"
This Issue addresses how an entity should account for the terms of share-based payments that include a performance target and allow the employee to earn the awards when the performance target is met after the requisite service has been provided by the employee.

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