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.
At its March 13, 2014 meeting, the FASB’s Emerging Issues Task Force (EITF) reached final consensus on one issue affecting share-based payments when the terms of an award include a performance target that could be achieved after the requisite service period. A consensus-for-exposure was reached on an issue pertaining to the recognition of new accounting basis (pushdown) in certain circumstances. Discussions also continued on two other issues. One issue relates to determining whether a host contract in a hybrid instrument issued in the form of a share is more akin to debt or equity, and the other issue relates to the measurement of financial assets and financial liabilities of a consolidated collateralized financing entity (CFE). The final consensus and consensus-for-exposure must first be ratified by the FASB at its March 26, 2014 meeting before becoming a final accounting standards update (ASU) or being exposed for public comment.
This edition of EITF observer provides a synopsis of the discussions and decisions reached at the March 13, 2014 EITF meeting.