Objective:

The objective of this project is to provide regular updates and improvements to the FASB Accounting Standards Codification^® on the basis of feedback received from stakeholders. Stakeholders have generated feedback on minor corrections and clarifications using the Codification Research System’s feedback mechanism since the Codification’s establishment in September 2009. The Codification’s Notice to Constituents describes the procedure for feedback submissions, which includes the staff analyzing and processing the submissions and any changes in an Accounting Standards Update. On November 10, 2010, the acting FASB chairman added a standing project to the FASB’s agenda to address feedback received from stakeholders about the Codification. The FASB staff reviews feedback, aggregates items that meet the scope of the project with other submissions, and discusses recommended Codification amendments with the FASB at one or more public meetings. The FASB will periodically issue a proposed Accounting Standards Update to seek public comment on any proposed amendments. The Board decided to limit the types of issues that it will consider through this project to minor changes to clarify the Codification or correct unintended consequences that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. This perpetual project will facilitate Codification updates for technical corrections and clarifications and eliminate the need for periodic agenda requests. The staff expects stakeholders to continuously utilize the Codification Research System’s feedback mechanism to provide feedback suggestions. As feedback is received, the staff will assess the merit of each submission. Useful feedback within the scope of this project will be included in a proposed Accounting Standards Update for the Board and discussed at public meetings. The Board has issued the following Accounting Standards Updates under the Codification improvements project:

• Accounting Standards Update No. 2020-10, Codification Improvements
• Accounting Standards Update No. 2018-09, Codification Improvements
• Accounting Standards Update No. 2018-06, Codification Improvements to Topic 942, Financial Services—Depository and Lending
• Accounting Standards Update No. 2017-15, Codification Improvements to Topic 995, U.S. Steamship Entities: Elimination of Topic 995
• Accounting Standards Update No. 2016-19, Technical Corrections and Improvements
• Accounting Standards Update No. 2015-10, Technical Corrections and Improvements
• Accounting Standards Update No. 2014-06, Technical Corrections and Improvements Related to Glossary Terms
• Accounting Standards Update No. 2012-04, Technical Corrections and Improvements

There are no active exposure documents at this time.

There are no media releases or educational materials at this time.

Decisions Reached at Last Meeting (August 26, 2020):

Codification Improvements

The Board redeliberated the amendments in the proposed Accounting Standards Update, Codification Improvements, and made the following decisions. Proposed Amendments

1. Amendments Excluded from Final Update. The Board decided to exclude proposed issues 37, 38, 40, 42-44, 49, and 50 from the final Update. Because of concerns about the effective date for those issues, the Board issued them in March 2020 in Accounting Standards Update No. 2020-03, Codification Improvements to Financial Instruments.
2. Section A—Proposed Amendments to Remove References to the Concepts Statements. The Board decided to exclude all issues proposed within Section A from the final Update. The Board also directed the staff to perform additional analysis of those references to Concepts Statements for a separate Accounting Standards Update. The Board also directed the staff to draft a basis for conclusions for those issues within Section A to be included in the separate Update.
3. Section B—Amendments to Disclosure Sections of the Codification. The Board affirmed all other proposed amendments in Section B.
4. Section C—Other Codification Improvements. The Board affirmed nine other proposed amendments in Section C.

Effective Date and Transition Guidance The Board decided that all the amendments in the final Update require transition guidance and an effective date, as follows:

1. For public business entities—annual years beginning after December 15, 2020.
2. For all other entities—annual years beginning after December 15, 2021.

Analysis of Benefits and Costs The Board concluded that it has received sufficient information and analysis to make an informed decision on the perceived costs of the changes and that the expected benefits would justify the expected costs of the amendments in the final Update.

The Board meeting minutes, handouts, and videos are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard. The following are links to the minutes for each meeting. To view Board meetings and handouts from the past 90 days, click here.

August 26, 2020	Board Meeting—Redileberations for the next round of Codification improvements.
October 30, 2019	Board Meeting—Initial deliberations for the next round of Codification improvements.
April 11, 2017	Board Meeting—Redeliberations on Subtopic 942-740 and the next round of Codification improvements
November 1, 2017	Board Meeting—Redeliberations and permission to ballot
August 30, 2017	Board Meeting—Initial deliberations for the next round of Codification improvements
May 3, 2017	Board Meeting—Initial deliberations on improvements to Topic 995 and Subtopic 942-740
October 19, 2016	Board Meeting—Comment letter feedback and discussion
January 20, 2016	Board Meeting—Redeliberations and permission to preballot
April 7, 2015	Board Meeting—Redeliberations and permission to ballot
July 30, 2014	Board Meeting—Initial deliberations for the next round of technical corrections and improvements
November 13, 2013	Board Meeting—Comment letter feedback and redeliberations
November 14, 2012	Board Meeting—Scope and Master Glossary amendment deliberations

On October 29, 2020, the Board issued Accounting Standards Update No. 2020-10, Codification Improvements. The staff is currently drafting a proposed Accounting Standards Update containing amendments that would remove references to the FASB Concepts Statements. The staff also is drafting the next round of proposed Codification improvements to be presented to the Board at a future Board meeting.

Regenia Cafini
Project Manager
rdcafini@fasb.org

Andrew Mallett
Postgraduate Technical Assistant
amallett@fasb.org