FASB combines guidance for income statement, comprehensive income into one topic

By Ken Tysiac

In an effort to simplify its Accounting Standards Codification, FASB has combined its guidance for income statements and comprehensive income into one topic.

Previously, FASB’s guidance on these subjects has been located in Topic 225, Income Statement, and Topic 220, Comprehensive Income. Under the changes, all guidance on both subjects will be contained in Topic 220.

FASB did not make any substantive changes to the actual guidance on these subjects. The combined topic will be renamed Topic 220, Income Statement—Reporting Comprehensive Income.

The board decided that locating this related material in one topic would simplify the codification for users and would make it easier for FASB to continue its ongoing maintenance of the codification.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.

RESOURCES

Keeping you informed and prepared amid the coronavirus crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.

SPONSORED REPORT

Getting leases in line

ASC Topic 842 is a relatively simple standard that can mean profound changes for organizations with leases. This report examines what makes this standard challenging and describes new ways for CPAs to add value.