The FASB has issued the Proposed Accounting Standards Update (ASU), Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. Comments are due by June 28, 2019.
SEC Referral to FASB
The FASB is proposing these amendments in response to a referral the SEC made to the FASB for potential incorporation into the FASB Accounting Standards Codification™ (Codification). The referral includes certain SEC disclosure requirements that overlap with, but require incremental information to, generally accepted accounting principles (GAAP).
Presentation and Disclosure Requirements
These proposals, if adopted as planned, would amend a number of Codification Topics. The primary proposed amendments would modify disclosure or presentation requirements in the particular Topics. Others clarify or make technical corrections to current requirements.
The proposed amendments would apply to all entities within the scope of the affected Topics, unless otherwise indicated.
The proposed ASU provides a summary table of the proposed amendments in the “Amendment to the FASB Accounting Standards Codification” section. The amendments affect the following Codification provisions, among others:
Amendments to the Master Glossary;
- Topic 205, Presentation of Financial Statements;
- Topic 250, Accounting Changes and Error Corrections;
- Topic 260, Earnings Per Share;
- Topic 270, Interim Reporting;
- Topic 505, Equity;
- Topic 805, Business Combinations;
- Topic 815, Derivatives and Hedging;
- Topic 830, Foreign Currency Matters; and
- Topic 850, Related Party Transactions.
The FASB will determine the effective dates of the proposed amendments after consideration of comments. The FASB expects the amendments to be applied prospectively to financial instruments issued after the effective date
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