Project to Improve Structure of FASB’s Codification Underway
A Financial Accounting Standards Board (“FASB”) group is undertaking a project to make improvements to the board’s Accounting Standards Codification. Led by the FASB’s Technical Corrections and Improvements project team, the project will focus on reorganizing the structure of the Codification’s content. All guidance in the Codification will remain untouched.
Most changes will impact the industry Topics. Some Topics will be simplified to reflect superseded guidance, which often caused parts of remaining guidance left among lengthy passages of outdated guidance. The overlapping Topic structure from several industry Topics will also be eliminated, creating a more user-friendly structure. The planned changes will occur through Codification maintenance updates, and details on the updates will be available through a link of the impacted Topic or Subtopic.
The project is expected to take over several months to complete, with the first two simplification updates scheduled to be processed this week. One update will focus on simplifying Topic 952, Franchisors. The other update will simplify the structure of Topic 220, Comprehensive Income, and Topic 225, Income Statement.