FASB Wants to Simplify U.S. GAAP
Announced on May 28th, the Financial Accounting Standards Board (“FASB”) is working on two projects planned to make U.S. GAAP less complicated. Called the “simplification initiative”, both proposals are aimed to remove the concept of “extraordinary items” from U.S. GAAP and simplify the ensuing inventory measurement. The proposals include Subtopic 225-20, Income Statement — Extraordinary and Unusual Items, and Topic 330, Inventory. Per Subtopic 225-20, organizations are required to categorize and disclose one-time, “extraordinary” events and transactions. An event is labeled “extraordinary” if it’s unusual and infrequent. If both conditions are met, then the organization must separate the event from. Read More.