Summary of Board Decisions

Summary of Board decisions 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 are included in an Exposure Draft for formal comment only after a formal written ballot. Decisions in an Exposure Draft may be (and often are) changed in redeliberations based on information provided to the Board in comment letters, at public roundtable discussions, and through other communication channels. Decisions become final only after a formal written ballot to issue an Accounting Standards Update.

May 24, 2013 Joint FASB/IASB Videoconference Board Meeting

Revenue recognition. The IASB and the FASB met on May 24, 2013, to continue their joint redeliberations on the revised Exposure Draft, Revenue from Contracts with Customers (the 2011 ED). The Boards discussed the application of the revenue model to credit card reward programs.

Application of the Model: Credit Card Reward Programs

Some preparers in the financial services industry requested clarification about the application of the revenue model to credit card reward programs in their feedback to the 2011 ED. Specifically, those respondents questioned whether the accounting illustrated in Example 24 in the 2011 ED would always apply to the award credits in a credit card reward program.

The Boards tentatively decided to amend paragraph IE21/IG79 (that is, the introductory paragraph to Example 24 in the 2011 ED) to clarify that the existence of a “customer loyalty program” and the promise to transfer award credits does not automatically give rise to a performance obligation. The Boards noted that in all arrangements, including, for example, where there are more than two parties to the arrangement, the entities in the arrangement should consider all the facts and circumstances in applying the revenue model to determine whether the promise to transfer award credits gives rise to a performance obligation.


Accounting for Financial Instruments: Classification and Measurement. The FASB and the IASB discussed the comment letter and outreach summary of the IASB’s November 2012 Exposure Draft, Classification and Measurement: Limited Amendments to IFRS 9. The meeting was informational, and no decisions were reached. The Boards will discuss the comment letter and outreach summary of the FASB’s proposed Accounting Standards Update, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, at a future meeting.