On Jan. 22, the Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update (ASU) to enhance the FASB Accounting Standards Codification. Comments are due on the proposed ASU by April 22. 

The proposed changes, part of an ongoing project to improve generally accepted accounting principles (GAAP), address 34 issues across various topics and apply to all entities within the relevant accounting guidance.

According to a press release from FASB, the proposed amendments would impact a wide range of Topics in the Codification and would apply to all reporting entities covered by the affected accounting guidance. The proposed ASU would address 34 issues such as those 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)

These codification improvements aim to provide clearer, more consistent guidance for preparers and stakeholders. FASB Chair Richard R. Jones emphasized the importance of ongoing stakeholder feedback to refine accounting standards and ensure their applicability across diverse sectors.

Stakeholders can review the complete proposal and submit their input through the FASB website.