PROJECT UPDATE

Codification Improvements (formerly Technical Corrections and Improvements)

Last updated on April 18, 2018.  Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.

(Updated sections are indicated with an asterisk *)

The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.
 

Project Objective and Background
*Due Process Documents
*Decisions Reached at Last Meeting
*Next Steps
*Board/Other Public Meeting Dates
Contact Information

Project Objective and Background

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 including 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 Standard Update for the Board and discussed at public meetings.

*Due Process Documents

On October 3, 2017, the Board issued the proposed Accounting Standards Update, Codification Improvements. On June 27, 2017, the Board issued the proposed Accounting Standards Update, Technical Corrections and Improvements to Topic 942, Financial Services—Depository and Lending: Elimination of Certain Guidance for Bad Debt Reserves of Savings and Loans. The Board has also issued the following Accounting Standards Updates under the Codification improvements project:

*Decisions Reached at the Last Meeting (April 11, 2018)

Elimination of Certain Outdated Special Guidance in Subtopic 942-740 for Bad Debt Reserves of Savings and Loans

The Board redeliberated the amendments in the proposed Accounting Standards Update, Technical Corrections and Improvements to Topic 942, Financial ServicesDepository and Lending: Elimination of Certain Guidance for Bad Debt Reserves of Savings and Loans, and made the following decisions:

Guidance Related to the Reserve Method of Accounting

The Board decided to retain the guidance related to the reserve method of accounting for bad debts for income tax purposes.

Comptroller of the Currency’s Banking Circular 202

The Board affirmed its decision to supersede guidance related to Circular 202.

Effective Date

The Board affirmed that the amendments will be effective upon issuance of a final Accounting Standards Update.

Transition

The Board affirmed that the amendments will not include transition disclosures.

Codification Improvements 

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

The Board discussed the proposed amendments and made the following decisions on specific issues:
  1. Issue 22 (Offsetting Securities Borrowed and Loaned Transactions)—The Board decided to retain the amendment in the final Update and to further clarify the issue’s basis for conclusions.
  2. Issue 27 (Addressing the Measurement of Carrying Value for Other Investments)—The Board decided to remove the amendment from the final Update and directed the staff to perform additional analysis on identifying and measuring impairment for not-for-profit entities.
  3. Issue 30 (Remove Stable Value Common Collective Trust Fund from Example)—The Board decided to retain the amendment in the final Update and remove all the key assumptions in paragraph 962-325-55-17 and to further clarify the issue’s basis for conclusions.
The Board also decided to remove issues 5, 10, and 21 from the final Update. The Board affirmed all other amendments in the proposed Update.
 
Effective Date and Transition Guidance

The Board decided that many of the amendments in the final Update do not require transition guidance and will be effective upon issuance of the final Update. The Board decided that most of the amendments in the final Update will have transition guidance with an effective date of the following:
  1. For public business entities: Annual periods beginning after December 15, 2018, including interim periods within those annual periods.
  2. For all other entities: Annual periods beginning after December 15, 2019, including interim periods within annual periods beginning after December 15, 2020.
The Board decided there are some conforming amendments in the final Update that have been made to recently issued guidance that is not yet effective that will require the application of the transition and effective date guidance related to the original Accounting Standards Update.

*Next Steps

Elimination of Certain Outdated Special Guidance in Subtopic 942-740 for Bad Debt Reserves of Savings and Loans

The Board directed the staff to draft a final Accounting Standards Update for vote by written ballot.

Codification Improvements 

The Board directed the staff to draft a final Accounting Standards Update for vote by written ballot.
 

*Board/Other Public Meeting Dates

The Board meeting minutes 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.
 
*April 11, 2017 Board Meeting—Redeliberations and 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

Contact Information

Regenia Cafini
Project Manager
rdcafini@fasb.org

Brittany Popovski
Postgraduate Technical Assistant
bpopovski@fasb.org