At the risk of being cut off at the knees, I found the information on the BFR I was looking for, with these salient points:
1) the FAA info is AC 61 98A. These are some excerpts.
2)>The flight review is intended to be an industry managed, FAA monitored currency program. The CFI must be aware that the flight review is not a test or check ride, but an instructional service designed to assess a pilot's knowledge and skills. (there is no PTS requirement here. assess is the word, and safety is the goal..see #5 below.)
3)>The objective of the flight review is to ensure that pilots who intend to act as PIC have the opportunity to ride with a flight instructor of their own choice within a specified period for an appraisal of their pilot proficiency and to seek assistance or guidance if any deficiency is identified.
4)>After completing the above analysis, the CFI should review these considerations with the pilot and reach an understanding regarding how the review will be conducted. The CFI may wish to provide the pilot with reading materials or recommend publications for study before actually undertaking the flight review. The CFI should also review the criteria for satisfactory completion of the review with the pilot. (the conduct of the review, and the criteria for successful completion, is by agreement with the pilot in question, see 2-d in the circular)
5)>(1) The maneuvers and procedures covered during the review are those which, in the opinion of the CFI conducting the review, are necessary for the pilot to perform in order to demonstrate that he or she can safely exercise the privileges of his or her pilot certificate. Accordingly, the instructor should evaluate the pilot's skills and knowledge to the extent necessary to ensure that he or she can safely operate within regulatory requirements throughout a wide range of conditions. (safe operation within regulatory requirements, as opposed to PTS requirements)
6)>Upon completion of the review, the instructor should complete the Flight Review Plan and Checklist (if used) and debrief the pilot. Whether or not the review was satisfactory, the instructor should provide the pilot with a comprehensive analysis of his or her performance, including suggestions for improving any weak areas. (no specification if this should be an oral analysis, a written one, or placed in a "notes" section of the logbook)
7)>The instructor should not endorse the pilot's logbook to note an unsatisfactory review, but should sign the logbook to record the instruction given. The CFI should then recommend additional training in the areas of the review that were unsatisfactory.
As I was clumsily trying to say, there is no need to record an unsatisfactory review, be the instructor SHOULD "...provide the pilot with a comprehensive analysis of his or her performance, including suggestions for improving any weak areas."
I imagine, like most places in the regs, we can each decide whether this "comprhensive analysis" can go in a section of the logbook marked "notes".
I was unable to find any reference to an acceptable standard of performance other than the safe opertion within the regs, mentioned above. The instructor can't require additional training, and if the pilot does not receive his BFR endorsement, he can seek a BFR with another CFI. If he does seek a second opinion, it makes sense that the next CFI would find a "note" about recommended training helpful.
Of course, you are free to not be that helpful. Just another $.02.