On October 10, GASB released a Preliminary Views (PV) document for public input on improving financial reporting standards for infrastructure assets. This PV, titled Infrastructure Assets, aims to enhance transparency around asset condition and maintenance practices by proposing changes in recognition, measurement, and disclosure requirements. If approved, the PV would define infrastructure assets as long-lasting, stationary components that deliver public services—such as roads and bridges—and require routine upkeep. It maintains that governments using historical cost for asset valuation must periodically review useful lives and salvage values, and it proposes new disclosures to capture maintenance expenses and asset aging metrics. Public comments are open until January 17, 2025, and a series of hearings and forums will allow stakeholders to provide further feedback.
Following this, on October 17, GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This new guidance requires more detailed note disclosures for certain capital assets, including lease and subscription assets, and introduces requirements for assets held for sale. In particular, the statement addresses new types of “right-to-use” assets introduced by recent GASB pronouncements, and it mandates that capital assets held for sale be disclosed by their historical cost and accumulated depreciation if a sale is expected within a year. Statement 104 will take effect for fiscal years starting after June 15, 2025, with earlier application encouraged.
Meanwhile, on October 16, FASB’s Board Meeting covered key decisions on financial presentation and credit losses. Addressing private company construction contracts, the Board endorsed the Private Company Council’s (PCC’s) recommendation to allow contract assets and liabilities to be presented on a gross basis, with a full retrospective transition required for companies choosing this alternative. In addition, FASB discussed simplifying credit loss reporting under Topic 606 for private companies and non-profits, allowing these entities to opt for a practical expedient that considers current economic conditions without adjustments to historical loss data. This approach aims to ease the reporting burden while ensuring timely disclosure. Drafts of these proposed updates are in progress, and FASB has set a 45-day public comment period for additional stakeholder feedback.
To round out the month, on October 21, FASB welcomed Alex Barros of Nippon Life Global Investors Americas and Clinton Chang of Morgan Stanley to its Investor Advisory Committee (IAC), strengthening its advisory team with deep financial expertise.