Among its ongoing codification simplification chores, the Financial Accounting Standards Board (FASB) has combined its guidance for income statements and comprehensive income into Topic 220.
Until now, guidance on these topics had been separated into Topic 225, Income Statement, and Topic 220, Comprehensive Income.
The new Topic 220 title will be Income Statement – Reporting Comprehensive Income and it incorporates the guidance from the former Topic 225. Topic 220 contains more guidance about net income and contains multiple examples of income statements (statement of comprehensive income), according to the FASB. Topic 220 also defines net income.
Referred to as Editorial and Maintenance Update 2017-19, the announced change provides nonsubstantive corrections to the codification, such as editorial corrections, various link-related changes, and changes to source fragment information (used for Cross Reference and the Printer-Friendly with sources). The maintenance update includes nonsubstantive visual corrections, which are reflected in the relevant Status tables
The FASB believes the new 64-page combined document will be easier for users – and easier for the board’s continued codification maintenance.
Terry Sheridan is an award-winning journalist who has covered real estate, mortgage finance, health care, insurance, personal finance, and accounting and taxation issues for newspapers, magazines, and websites. A Chicago native and former South Florida resident, she now lives in New England.