FASB issued a standard Monday that makes several clarifying changes to its Accounting Standards Codification and corrects what the board describes as unintended application of guidance.
The changes in Accounting Standards Update No. 2018-09, Codification Improvements, are not expected to have a significant effect on current accounting practices or create significant implementation costs for most financial statement preparers.
The amendments affect a variety of topics and apply to all reporting entities within the scope of the affected accounting guidance. The standard amends:
- Subtopic 220-10, Income Statement — Reporting Comprehensive Income — Overall.
- Subtopic 470-50, Debt — Modifications and Extinguishments.
- Subtopic 480-10, Distinguishing Liabilities from Equity — Overall.
- Subtopic 718-740, Compensation — Stock Compensation — Income Taxes.
- Subtopic 805-740, Business Combinations — Income Taxes.
- Subtopic 815-10, Derivatives and Hedging — Overall.
- Subtopic 820-10, Fair Value Measurement — Overall.
- Subtopic 940-405, Financial Services — Brokers and Dealers — Liabilities.
- Subtopic 962-325, Plan Accounting — Defined Contribution Pension Plans — Investments — Other.
Transition and effective date guidance for the changes varies based on the facts and circumstances of each amendment.
— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.