On the Horizon - May 14, 2013

Author:Grant Thornton's Audit Practice Group
Profession:Grant Thornton LLP
 
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FASB

Proposed ASU to amend Codification's Master Glossary

The Board is asking for comments on proposed modifications to the Master Glossary included in the FASB Accounting Standards Codification® (ASC).

The amendments in proposed Accounting Standards Update (ASU), Technical Corrections and Improvements Related to Glossary Terms, would essentially delete outdated terms; correct existing or insert missing links; address situations where the same term is used to convey similar, but not identical, meanings by changing the term used; provide additional clarification; and correct for unintended applications. The proposed changes are not expected to impact current accounting practices.

Comments on the proposed ASU are due by August 5.

Highlights of May 1 meeting posted

All decisions reached at Board meetings are tentative and may be changed at future meetings. Decisions are included in an Exposure Draft only after a formal written ballot. Decisions reflected in Exposure Drafts are often changed in redeliberations by the Board based on information received in comment letters, at public roundtable discussions, and from other sources. Board decisions become final after a formal written ballot to issue a final Accounting Standards Update.

During its May 1, Board members primarily focused on three topics: new agenda items for the EITF, a new ongoing Private Company Council project for the Board, and a Discussion Paper that will be issued on not-for-profit financial communications. These topics are briefly summarized below (with the exception of the EITF agenda items, which were addressed in the May 7, 2013 On the Horizon).

Private Company Council project

The Board added to its own agenda a standing project related to Private Company Council activities with a dual objective:

To monitor and consider both proposed and final guidance issued by the Council for private companies To consider if any proposed or final guidance issued by the Council is appropriate for public companies, not-for-profit organizations, or employee benefit plans Not-for-profit financial communications

After discussing research on other financial communication frameworks, Board members decided to issue a Discussion Paper to elicit feedback from not-for-profit organizations about their financial communications. The Board believes that this input will help to decide whether to add a project on not-for-profit financial communications to its agenda.

The Board expects to issue the...

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