As a part of the FASB’s standing project to address suggestions received from stakeholders and to make other incremental improvements to GAAP, the FASB has issued an Exposure Draft, Codification Improvements, that includes technical corrections, clarifications to guidance, simplifications to wording, and other minor improvements.

The primary changes are split into three sections:

• Section A - changes to remove references to various Concepts Statements
• Section B - amendments that will improve the existing guidance by including all disclosure requirements in the appropriate Disclosure Section of the Codification
• Section C - minor improvements and changes that vary in nature and in applicability to organizations.
  

Certain changes in this standard would be effective for public business entities, not-for-profits that have issued or are conduit bond obligors for securities traded, listed, or quoted on an exchange or over-the-counter market, and employee benefit plans that file or furnish financial statements with or to the SEC for annual periods beginning after December 15, 2019. For all other entities, the standard would be effective beginning with annual periods beginning after December 15, 2020. An entity would apply these proposed changes on a retrospective basis and early adoption would be permitted.

Other changes in this standard would be effective for public business entities, not-for-profits that have issued or are conduit bond obligors for securities traded, listed, or quoted on an exchange or over-the-counter market, and employee benefit plans that file or furnish financial statements with or to the SEC for annual periods beginning after December 15, 2020. For all other entities, the standard would be effective beginning with annual periods beginning after December 15, 2021. An entity would apply these proposed changes on a prospective basis and early adoption would be permitted.

Determination of which transition application is required is communicated through a link in each section to the appropriate transition guidance.

The full text of the Exposure Draft is available here.

^{Readers should not act upon information presented without individual professional consultation.}