FASB proposes codification changes

The Financial Accounting Standards Board released a proposed accounting standards update containing a set of targeted improvements to the FASB Accounting Standards Codification. 

The amendments in the proposed ASU involve incremental changes to the codification and would affect a wide range of topics. They 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 term "amortized cost" from the Master Glossary;
• Clarifying the calculation of earnings per share when a loss from continuing operations exists;
• Clarifying the calculation of the reference amount for beneficial interests;
• Clarifying the guidance for the transfer of receivables from contracts with customers; and,
• Clarifying the accounting for certain receivables by not-for-profit entities.

FASB is asking for comments by April 22, 2025.