On May 6, 2013, the Financial Accounting Standards Board (FASB) released an exposure draft proposing technical corrections and improvements to the FASB Accounting Standards Codification (the Codification). The proposed update is part of the FASB's ongoing project to improve the Codification. This set of proposed changes is focused on improving the Codification’s master glossary.
The proposed amendments are not intended to change U.S. GAAP. Instead, they are aimed at making the glossary easier to understand and reducing the number of glossary terms.
In 2010, the FASB created a standing project on its agenda to address technical corrections or clarifications to guidance in the Codification. The amendments proposed in this exposure draft relate to the Codification’s master glossary terms across a broad range of topics. The proposed amendments are divided into four sections:
The proposed amendments cover a broad range of topics in the Codification and would apply to all reporting entities within the scope of the affected master glossary terms. Generally, the updates are not expected to have a significant effect on current accounting practice and are instead designed to reduce the complexities of the Codification.
The FASB will determine the effective date after it has considered the feedback on the proposal.
Comments on the FASB’s proposal are due by August 5, 2013.
PwC clients who have questions about this In brief should contact their engagement partner. Engagement teams that have questions should contact Tim Corrigan (1-973-236-5302) or John Stieg (1-973-236-7057) in the National Professional Services Group.