FASB Proposes Changes to Balance Sheet Debt Classification and Inventory Disclosures
In a January 10 news release , the Financial Accounting Standards Board (“FASB”) announced the issuance of two proposed Accounting Standards Updates impacting the balance sheet classification of debt and the inventory disclosure requirements under the Disclosure Framework project. Classification of Debt on a Balance Sheet: The FASB proposes simplifying the current debt classification guidance with an all-encompassing, consistent principle that addresses a borrower’s contractual rights and responsibilities. The proposed changes could create a shift in how some debt arrangements among noncurrent liabilities and current liabilities are classified. Comments on the proposal are due Friday, May 5. Disclosure Framework—Inventory: The FASB wants companies to. Read More.