FASB Agenda Consultation (2025 BDO Comment Letter)
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In January 2025, the FASB published an Invitation to Comment on its agenda, to solicit broad stakeholder feedback about the FASB’s standard-setting process and its future standard-setting agenda.
In our response, BDO recommended that the Board prioritize projects to:
- Clarify the indexation guidance in ASC 815-40 by providing targeted improvements and/or developing a single cohesive accounting model for equity-linked financial instruments. In other words, address known practice issues in the near term, while taking on a broader project in the longer term.
- Simplify the debt modification guidance in ASC 470 by eliminating the troubled debt restructuring model, adding disclosures about financial difficulty, and adding classification guidance for current vs. long-term debt.
- Reduce accounting differences between asset acquisitions and business combinations; for example, by aligning the guidance on accounting for in-process research and development (IPR&D) and clarifying when it is appropriate to analogize to the business combination guidance.
- Develop a single consolidation model that reduces application complexity. While many consolidation conclusions may be consistent with current practice, a single model would mitigate costs for preparers and auditors.