Proposed FASB Codification improvements
The proposals are part of an ongoing FASB project to make non-substantive technical corrections, clarifications, and improvements that are not expected to have a significant effect on accounting practice or create a significant administrative cost to most entities.
- November 26, 2019 – FASB issued proposed ASU
- December 26, 2019 – Comments due on proposed ASU
The FASB is proposing to clarify, correct errors in, and make improvement to several Codification Topics, including proposals to:
- Remove references to various Concepts Statements within the Codification.
- Improve consistency of the Codification by including all disclosure guidance in the appropriate Disclosure Sections.
- Align the contractual term to measure expected credit losses for a net investment in a lease under the new credit losses standard (ASC 326) to be consistent with the lease term determined under the new leases standard (ASC 842).
- Clarify the applicability of the portfolio exception to nonfinancial items accounted for as derivatives.
- Clarify that nonpublic business entities are subject to the fair value option disclosures.
- Clarify that when an entity regains control of financial assets sold, an allowance for credit losses should be recorded in accordance with Topic 326.