Accounting & reporting

The standard includes changes that apply to all organizations, plus some simplifications that apply just to private companies.

Through its simplification initiative, FASB is identifying areas of GAAP where complexity can be reduced without sacrificing the usefulness of information provided in financial statements.

The Financial Accounting Standards Board clarified accounting for embedded derivatives in an accounting standard.

FASB issued financial reporting standards that address recognition of breakage for prepaid stored-value products and the effects of derivative contract novations on existing hedge accounting relationships.