FASB issued two proposals Tuesday designed to make technical corrections to its Accounting Standards Codification.
In Proposed Accounting Standards Update, Technical Corrections and Improvements to Topic 942, Financial Services—Depository and Lending: Elimination of Certain Guidance for Bad Debt Reserves of Savings and Loans, FASB aims to supersede outdated deferred tax guidance on bad debt reserves of savings and loans that arose after Dec. 31, 1987.
The proposal also would supersede guidance related to the Comptroller of the Currency’s Banking Circular 202, Accounting for Net Deferred Tax Charges. The proposed amendments would affect financial institutions, including stock and mutual savings and loan associations, that may have acquired a bad debt reserve that is the subject of the proposed amendments. Comments can be made on FASB’s website by Aug. 28.
With the other proposal, FASB intends to supersede Topic 995, U.S. Steamship Entities, because the board does not consider its guidance relevant anymore. FASB’s plan is described in Technical Corrections and Improvements to Topic 995, U.S. Steamship Entities: Elimination of Topic 995. The deadline for comments on this proposal also is Aug. 28.
—Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.