FASB meeting tentative decisions

The FASB met on Wednesday, October 12, 2022 and came to the following tentative decisions:

Accounting for and disclosure of crypto assets

The FASB decided to require an entity to:

1. Measure crypto assets at fair value, using the guidance in Topic 820, Fair Value Measurement.
2. Recognize increases and decreases in fair value in comprehensive income each reporting period.
3. Recognize certain costs incurred to acquire crypto assets, such as commissions, as an expense (unless the entity follows specialized industry measurement guidance that requires otherwise).

Scope—credit cards and HELOCs

The FASB decided that credit cards, home equity lines of credit (HELOCs), and other revolving arrangements with active borrowing privileges should be included within the scope of the PFA model when acquired through both business combinations and asset acquisitions.

Scope — Trade accounts receivable

The FASB decided that trade accounts receivable should be within the scope of the PFA model when acquired through both business combinations and asset acquisitions.

Scope — Assets not recognized at fair value

The FASB decided that assets not recognized at fair value in a business combination, primarily contract assets and a lessor’s net investment in sales-type and direct financing leases, should be included within the scope of the PFA model when acquired through both business combinations and asset acquisitions.

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