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This is the FASB story so far:
The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.
The objective of this project is to consider whether entities should be given the option (or be required) to measure an investment property at fair value through earnings. The existing international accounting standard (IAS 40, Investment Property) provides such an option. This project also will consider how an entity should consider a lease when measuring the fair value of a leased investment property.
As part of this project, the Board also may address related issues that are within the scope of Emerging Issues Task Force (EITF) Issue No. 09-D, “Application of Topic 946, Financial Services—Investment Companies, by Real Estate Investment Companies.”
*Decisions Reached at Last Meeting (February 9, 2011)The Board reaffirmed its previous decision that the investment properties guidance would only apply to entities that meet the five criteria the Board has previously developed. The Board decided that the business activities and business purpose criteria should describe the qualifying entities as those that invest in real estate for total return. The revised criteria follow:
The Board directed the staff to draft a proposed Update. Please refer to the Current Technical Plan for information about the expected release date of the exposure document.
*Board/Other Public Meeting Dates
The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.
|*February 9, 2011||Board Meeting—Additional scope considerations|
|December 1, 2010||Board Meeting—Additional scope considerations|
|November 10, 2010||Board Meeting—Scope|
|August 31, 2010||Board Meeting—August deliberations|
|July 14, 2010||Board Meeting—July deliberations|
March 10, 2010
Board Meeting—Agenda Decision
At the January 20, 2010 joint Board meeting, the FASB and the IASB tentatively decided that a lessor of investment properties would be required to apply the proposed new lessor accounting requirements if the lessor measures its investment properties at cost. The IASB tentatively decided that if a lessor of investment properties measures its investment properties at fair value in accordance with IAS 40, it would not apply the proposed new lessor accounting requirements to the lease; instead, it would continue to account for those leases as operating leases, as specified in IAS 17, Leases.Because U.S. generally accepted accounting principles (GAAP) do not provide an option to measure investment properties at fair value, the FASB added this project on March 10, 2010 to decide whether to permit or require investment properties to be carried at fair value.
*Contact InformationKim Yang