FASB issued a new standard Thursday that is designed to provide incremental improvements to its Accounting Standards Codification.
Accounting Standards Update No. 2020-10, Codification Improvements, describes the changes. The standard is part of a standing FASB project designed to address minor improvements to GAAP that are deemed necessary by the board.
The project makes it possible to update the codification for technical corrections such as conforming amendments, clarifications to guidance, simplifications to wording or structure of guidance, and other minor changes.
The standard advises financial statement preparers to review the ASU in its entirety to identify any changes that may affect their accounting.
—Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.