FASB Codification Topic on U.S. Steamship Entities Nixed
December 13, 2017
A new Accounting Standards Update (“ASU”) from the Financial Accounting Standards Board (“FASB”) removes Topic 995, U.S. Steamship Entities, from its Codification. The amendments under ASU No. 2017-15, Codification Improvements to Topic 995, U.S. Steamship Entities: Elimination of Topic 995, impact entities with unrecognized deferred taxes linked to statutory reserve deposits made on or before December 15, 1992. The FASB is eliminating the guidance due it no longer being relevant.
ASU No. 2017-15 is effective for fiscal years and first interim periods starting after December 15, 2018. Entities will be allowed to adopt the amendments early, including in an interim period.
Entities are encouraged to apply the standard on a modified retrospective basis via a cumulative-effect adjustment to retained earnings as of the start of the adoption period. During the adoption period, an entity must disclose any accounting principle changes. Also, entities should mention the sums and forms of temporary differences wherein a deferred tax liability had not been recognized previously.