FASB Makes Decisions on Conceptual Framework and Codification Projects
At its August 30 board meeting, the Financial Accounting Standards Board (“FASB”) reached decisions on two ongoing projects. The first project covered was the conceptual framework project, in which the FASB agreed to remove the terms “probable”, “future economic benefits”, “sacrifices of economic benefits”, and “past transactions or events” from its revised definitions of an asset and a liability. Staff members were ordered to continue reviewing whether “control” is needed in the FASB’s definition of an asset.
The FASB then discussed its project to improve the Accounting Standards Codification (“Codification”). Talks involved a staff analysis of the proposed changes and clarifications to the Codification. As a result of the discussion, the FASB approved the proposed amendments that the staff recommended for several Topics of the Codification. Transition guidance will be offered for some amendments. Staff members were ordered to prepare a proposed Accounting Standards Update for vote, with a 60-day comment period.