FASB proposed numerous changes Tuesday as part of its annual project to address minor problems with its Accounting Standards Codification.
Each year, FASB makes changes to clarify the codification or correct unintended application of guidance. The changes are not expected to have a significant effect on current accounting practice or create a significant administrative cost for most organizations that use U.S. GAAP to prepare their financial statements.
This year, the proposed changes include:
- Amendments that would remove references to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the accounting guidance.
- Amendments that would include all disclosure guidance in the appropriate Disclosure Section of the codification.
- More than two dozen changes that mostly are intended to clarify, conform, or simplify existing guidance.
Comments can be made by Dec. 26 at FASB's website.
—Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA's editorial director.