FASB seeks public comment on proposed codification improvements

FASB has published a proposed Accounting Standards Update (ASU) focused on targeted improvements to the FASB Accounting Standards Codification. Stakeholders are encouraged to review and provide input on the proposed ASU by April 22, 2025. 

The proposed ASU is issued as part of the Board’s technical agenda project to make incremental improvements to GAAP. This evergreen project facilitates Codification updates for a broad range of Topics. The resulting amendments are collectively referred to as Codification improvements. 

The amendments in this proposed ASU would affect a wide variety of Topics in the Codification and would apply to all reporting entities within the scope of the affected accounting guidance. The proposed ASU would address 34 issues including issues related to: 

• Removing the Master Glossary Term Amortized Cost (Issue 1 in the proposed ASU) 

• Clarifying the Calculation of Earnings per Share When a Loss from Continuing Operations Exists (Issue 4) 

• Clarifying Calculation of the Reference Amount for Beneficial Interests (Issue 6) 

• Clarifying Guidance for the Transfer of Receivables from Contracts with Customers (Issue 20) 

• Clarifying Accounting for Certain Receivables by Not-for-Profit Entities (Issue 25) 

Stakeholders are encouraged to review the entire document.