An action alert issued recently by the Financial Accounting Standards Board (FASB) gives everyone a heads up that the board’s Technical Corrections and Improvements team will be working over the next few months to improve the structure of the content of the Accounting Standards Codification.
Most of the changes will affect industry topics. No guidance will change as a result of these improvements, but the structure of the content of some topic areas will be changed to simplify them.
So, what happened? In recent years, large portions of guidance in the industry topics were superseded. But that left sections of old guidance mixed in with the superseded guidance. So, the FASB team will take out the old “intersecting” guidance, creating a more user-friendly industry topic structure.
Users will find the changes made effective through maintenance updates to the codification. Information about the changes will be available in a link in the Status table of a particular industry topic or subtopic.
Two updates to the codification were made on May 30. One simplified the structure of Topic 952, Franchisors. The other simplified Topic 220, Comprehensive Income, and Topic 225, Income Statement, by consolidating all of the presentation guidance for the statement of comprehensive income in Topic 220.
Released in 2009, the Accounting Standards Codification organizes the thousands of US GAAP pronouncements using a topic-based format.
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.