Accounting Standards Updates – When Does the Guidance Take Effect and What Does It Change?

Audit | January 25, 2017 | Kat Peterson

The Financial Accounting Standards Board (FASB) issues Accounting Standards Updates (ASUs) to communicate changes to the FASB Codification, and several updates are effective in 2016 for calendar-year-end entities with many others approaching in subsequent years. Click here for a summary of ASUs effective in 2016 for calendar year-end entities and ASUs effective after 2016 for calendar-year-end entities. Below you’ll find links to synopses of key ASUs, including descriptions of what each standard changes and when it becomes effective.

  • ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern 
  • ASU 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items
  • ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs
  • ASU 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement
  • ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments
  • ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes
  • ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities
  • ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting
  • ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
  • ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments
  • ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash

If you have questions about these ASUs and how they may affect your business, please contact a member of our audit team at 512.610.7200.

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