FASB proposes series of changes to accounting standards

January 23, 2025

FASB is seeking feedback on a proposed Accounting Standards Update (ASU) that addresses 34 issues in its codification.

The "targeted improvements" to the FASB Accounting Standards Codification are a part of an evergreen project focused on making incremental changes to GAAP. Public comments on the ASU, published Wednesday, will be accepted through April 22.

In a news release, FASB encouraged stakeholders to review the entire proposed ASU but highlighted a few of the issues addressed, including:

Removing the Master Glossary term "amortized cost" (Issue 1 in the 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); and

Clarifying accounting for certain receivables by not-for-profit entities (Issue 25).

Earlier this month, FASB asked stakeholders for input on its standard-setting priorities, including a request for suggestions on areas to consider for future changes to GAAP.

[Journal of Accountancy]