FASB proposes technical corrections and changes

The board aims for incremental improvements to GAAP.

FASB proposed technical corrections and minor changes to its Accounting Standards Codification, with a particular focus on guidance for insurance and troubled debt restructuring. FASB does not expect the changes to affect current accounting practice or result in significant costs.

Under the proposal:

  • Amended, selected insurance guidance would use the term "participating insurance" consistently in places where the current relevant guidance interchangeably uses the terms "participating contract," "participating insurance contract," and "participating insurance."
  • The term "reinsurance receivable" would be used consistently in places where the current guidance interchangeably uses "reinsurance receivable" and "reinsurance recoverable" in Topic 825, Financial Instruments, and Topic 944, Financial Services—Insurance.
  • The term "debt" would be removed from the Master Glossary. The use of the current definition would be restricted to use in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, and Subtopic 470-60, Debt—Troubled Debt Restructurings by Debtors.
  • An amendment to Subtopic 360-20, Property, Plant, and Equipment—Real Estate Sales, would correct the guidance to include the final decision of the Emerging Issues Task Force that loans insured under the Federal Housing Administration and the Veterans Administration do not have to be fully insured by those programs to recognize profit using the full accrual method.
  • An amendment to Topic 820, Fair Value Measurement, would clarify the difference between an "approach" and a "technique" related to that topic. The amendment also would require an entity to disclose when there has been a change in a valuation "approach" and/or a valuation "technique."
  • An amendment to Subtopic 860-20, Transfers and Servicing—Sales of Financial Assets, would align implementation guidance and clarify the considerations that should be included in an analysis to determine whether a transferor once again has effective control over transferred financial assets.

SPONSORED REPORT

2018 financial reporting survey: Challenges and trends

Learn the top reporting challenges that emerged in a survey of more than 800 finance, accounting, and compliance professionals across the world, and compare them with your organization's obstacles.

PODCAST

How the skill set for today’s CFO is changing

Scott Simmons, a search expert for large-company CFOs, gives advice for the next generation of finance leaders and more, including which universities are regularly producing future CEOs and CFOs.