FASB Issues ASU 'Technical Corrections and Improvements'
by Terri Eyden on
By Anne Rosivach
The Financial Accounting Standards Board (FASB) has issued amendments to the FASB Accounting Standards Codification® based on feedback from stakeholders. The amendments, issued as Accounting Standards Update, Technical Corrections and Improvements (ASU No. 2012-04), are the product of a standing FASB project, which was added to the board's agenda in 2012 by then acting FASB Chairman Leslie Seidman.
The project is designed to facilitate Codification updates for technical corrections, clarifications, and improvements, and to eliminate the need for periodic agenda requests for narrow and incremental items.
Since the Codification was established in September 2009, constituents have generated feedback on minor corrections and clarifications using the Codification Research System's feedback mechanism. Changes to the Codification are communicated through an ASU.
Conforming Amendments in ASU No. 2012-04
The October 2012 update includes more substantive, limited-scope improvements. These are items that represent narrow and incremental improvements to US GAAP and are not purely technical corrections. The update contains conforming amendments to the Codification to reflect the measurement and disclosure requirements of Topic 820, Fair Value Measurement, that identify when the use of "fair value" should be linked to the definition of fair value in Topic 820.
The amendments included in the update are generally non-substantive in nature. The update states:
"The amendments in this Update represent changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Additionally, the amendments will make the Codification easier to understand and the fair value measurement guidance easier to apply by eliminating inconsistencies and providing needed clarifications."
The amendments in ASU No. 2012-04 that will not have transition guidance will be effective upon issuance.
Amendments may result in changes to existing practice. Transition guidance has been provided for certain amendments which the Board deemed to be more substantive and the effective date will be delayed.
For public entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. For nonpublic entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2013.
Changes to US GAAP
The update is not intended to significantly change US GAAP. The amendments are not expected to create any new differences between US GAAP and IFRS.
- FASB Says Proposed 'Technical Corrections' to Code Not Pervasive, But May Result in Changes to Practice
You may like these other stories...
Camp Hopes Estate Tax Will Be on Its Way OutAn article in Bloomberg said that Republicans are considering voting this year to repeal the U.S. estate tax, according to House Ways and Means Chairman Dave Camp (R.-Mich.). He...
Read more from Larry Perry here and in the Today's World of Audits archive.Learning "how" to audit cash is mainly learning "when" to audit cash and to "what extent" cash auditing procedures...
Senate Takes Different Approach from House for Highway and Bridge FundEarlier this week, according to a New York Times article, the Senate agreed to fill the coffers of the fund that pays for highway and bridge repairs with...
Upcoming CPE Webinars
FRF for SMEs Series--Measurement and Disclosure Principles for various Consolidations and Business Combinations, Part 4B
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
In this session we'll review best practices for how to generate interest in your firm’s services.
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.