Project Pages


Project Description: The objective of this proposed project is to address various technical corrections and other practice issues that have been identified in practice.

Status: Added to Agenda: August 2020 Omnibus—Project Plan

Background: The project will address the following issues

Remeasurement of Certain Assets and Liabilities

Statements No. 87, Leases; No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements; and No. 96, Subscription-Based Information Technology Arrangements, each provide that the asset or liability (as applicable in the context of each pronouncement) is not required to be remeasured solely for a change in an index or a rate used to determine variable payments. This project would address the appropriate reporting of those transactions when that circumstance is encountered.

Effect of a Purchase Option on Contract Terms and the Measurement of the Liability

The lease term is the period during which a lessee has a noncancelable right to use an underlying asset, plus periods covered by a lessee’s option to terminate the lease if it is reasonably certain, that the lessee will not exercise that option. If a lessee determines that a purchase option will be exercised, the option period is not included in the lease term; however, the exercise price of the purchase option is only included in the measurement of the liability when payment is reasonably certain.  Statements 94 and 96 include similar provisions in determining the lease term but do specifically address purchase options.  This project would address that difference. 

Derivative Instruments That Are Neither Hedges nor Investments

Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, categorizes all derivative instruments that are not effective hedges as investments. However, certain derivative instruments that are not effective hedges also do not meet the definition of an investment in Statement No. 72, Fair Value Measurement and Application. This project would consider whether a third category of derivative instruments should be established.

Exchange Financial Guarantees

Statement No. 70, Accounting and Financial Report for Nonexchange Financial Guarantees, does not apply to financial guarantees made or received by governments in an exchange or exchange-like transaction. This project would consider establishing guidance specifically for exchange and exchange-like financial guarantees.

Other Technical Corrections

Current Codification language uses outdated balance sheet terminology and incorrectly refers to fund equity and other terms. This project would consider minor terminology and other technical corrections in order to make the Codification consistent with current guidance established in the original pronouncements, as amended.

Accounting and Financial Reporting Issues: The following issues will be considered:
  • Leases and related pronouncements:
    • Remeasurement of assets and liabilities solely for a change in an index or rate used to determine variable payments
    • Effect of a purchase option on contract terms and measurement of the liability
  • Classification of derivative instruments that are neither hedges nor investments
  • Recognition of exchange and exchange-like financial guarantees
  • Technical corrections to terminology in the Codification.
Project History:
  • Proposed for addition to current technical agenda: August 2020
  • Consultative group appointed? No
Work Plan:
Board meetings Topics to Be Considered
September 2020: Remeasurement of assets and liabilities.
October 2020: Purchase options.
December 2020: Derivatives instruments.
January 2021: Exchange and exchange-like financial guarantees.
February 2021: Terminology issues.
May 2021: Discuss the first draft of a standards section of an Exposure Draft of a proposed Statement.
June 2021: Discuss preballot draft of Exposure Draft of a proposed Statement.
July 2021 (T/C): Discuss ballot draft of an Exposure Draft of a proposed Statement and consider for approval.
July–October 2021: Comment period.
November–February 2022: Redeliberate issues.
May 2022: Discuss preballot draft of a final Statement.
June 2022 (T/C): Discuss ballot draft of a final Statement and consider for approval.

Omnibus—Recent Minutes


Omnibus—Tentative Board Decisions to Date