Elizabeth and Equity Securities (Topic 320) would

Elizabeth RodriguezACG4101                   TheFASB issued a Proposed Accounting Standards Update for the 2017-230-Codification Improvements. In this proposed update there are a variety oftopics in the Codification that will be affected. The Amendments to the FASBAccounting Standards Codification section provides a chart showing the Topics,paragraphs, and the essence of the amendment that is being projected. Theseimprovements affect to all companies that are within the range of the concernedaccounting guidance.              Thefundamental proposed amendments to the Codification that are related toasset-type transactions only are the following. Investments-Debt and EquitySecurities (Topic 320) would make easy the Codification by eliminatingrepetitious disclosure conditions in paragraphs 320-10-50-1A and 320-10-50-13(FASB Accounting Standards Codification (2017)). These projected amendmentswould replace paragraph 320-10-50-13 and bring explanation to the requirementsin paragraph 320-10-50-1A related to the financial statements.

FASB statementNo. 5 contains the disclosure requirements in Section 320-10-50 that did notexplain whether the disclosures where necessary for temporary periods. This isthe reason why stakeholders required clarification. This problem was solved bythe staff when they clarified that the disclosures where essential fortemporary statements.  Statement 115 wasamended by giving explanation whether the disclosure requirements correspondedwith the interim statements.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

Then paragraph 320-10-50-1A was classified fromparagraph 18A of Statement 115 and paragraph 320-10-50-13 was systemized fromthe Special Report on Statement 115. Paragraph 320-10-50-1A must be amended andparagraph 320-10-50-13 has to be discarded, with al ink transition paragraph105-10-65-5 (FASB Accounting Standards Codification (2017)) This link containsthe disclosures for 320-10-50-1A and 320-10-50-13. In the 320-10-50-1A, thedisclosures are required for all complete set of financial statements duringtemporary and annual periods. The 320-10-50-13 paragraph is displaced byaccounting Standards Update No. 201X-XX.              The other fundamental proposedamendment to the Codification is Other Expenses (Topic 720). This amendment hasas objective to coordinate the area of this guidance in the Codification withthe source guidance in SOP 93-7 by eliminating the references in the conductionand heading to advertising that is categorized as direct-response.

The proposedamendment would also assign the guidance in paragraph 720-35-15-5 related todirect-response advertising costs to paragraph 944-30-25-1AAA (FASB AccountingStandards Codification (2017)). The paragraph 720-35-15-5 should be discardwith a link transition to paragraph 105-10-65-4. This includes other expenses-Advertising Costs, 720-35-15-5 paragraph replaced by Accounting StandardsUpdate No.

201X-XX. Then paragraph 720-35-25-1 should be amended with a link totransition paragraph 105-10-65-4. It states that cost of advertising must beexpensed when they incurred or the first time they occur except for the costspecified in paragraph 720-35-25-1A.

These activities should be applied for thetwo types of advertising-activities. For instance, when advertising costs aredeferred before advertising happens, it means that costs have been incurred foradverting that will happen. The other example is when an advertising is showedfor the first time as a tv commercial or the first promotional event of amagazine.

The heading preceding paragraph 720-35-25-1A must be replaced with alink to transition paragraph 105-10-65-4. Here the expenses for someadvertising are made after revenues are recognized (FASB Accounting StandardsCodification (2017)).           Another change that is made on thisproposed is an amendment of paragraph 944-720-55-1 with a link transitionparagraph 105-10-65-4.

Here the title is Financial Services-Insurance-OtherExpenses that implement the requirement that an insurance entity charge toexpense as incurred any acquirement cost that cannot be benefit according withparagraphs 944-30-25-1A through 25-1AAA. Some of the costs are solicitingpotential customers, market research, training, administration, and others.            Another fundamental proposedamendment to the Codification is Income Taxes-Other Considerations or SpecialAreas.

Paragraph 740-30-25-9 should be amended with a link transition paragraphto recognized deferred tax asset (FASB Accounting Standards Codification(2017)).  For instance, a deferred taxasset should be recognized for an excess of the tax basis over the amount forfinancial reporting of an investment in a subsidiary or of an investment in acorporate joint venture. In this amendment the goal is to clarify that thephrase permanent in duration is to change corporate joint venture and is not todetermine to modify the statement investment in a subsidiary. Reference:FASBAccounting Standards Codification (2017). ProposedAccounting Standards Update 2017-230—Codification Improvements.

Retrieved from https://asc.fasb.org/home&agreed=1  


I'm Mary!

Would you like to get a custom essay? How about receiving a customized one?

Check it out