United States

FASB Codification improvements

FINANCIAL REPORTING INSIGHTS  | 

Periodically, the Financial Accounting Standards Board (FASB) updates the Accounting Standards Codification for minor technical corrections and clarifications that are deemed necessary. Recently the FASB issued Accounting Standards Update (ASU) 2018-09, Codification Improvements, which makes changes to clarify the Codification, corrects unintended application of guidance, and makes minor improvements to the Codification that are not expected to have a significant effect on current accounting practice. The transition and effective date guidance in the ASU is based on the facts and circumstances of each amendment.

The FASB also recently issued ASU 2018-10, Codification Improvements to Topic 842, Leases, to clarify and correct unintended application of narrow aspects of the lease accounting guidance. For entities that early adopted Topic 842, the amendments are effective upon issuance of ASU 2018-10, and the transition requirements are the same as those in Topic 842. For entities that have not adopted Topic 842, the effective date and transition requirements for ASU 2018-10 are the same as the effective date and transition requirements in Topic 842.