15 Oct FASB – Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs

October 15, 2020 – Accounting standards update 2020-08 issued to amend FASB accounting codification improvements to subtopic 310-20, receivables—non-refundable fees and other costs. Guidance in accounting standards update, ASU 2017-08, is affected by amendments.

Accounting Standards Update

Amendments were issued to clarify that an entity should reevaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. Improvements to US GAAP financial reporting taxonomy are required by amendments, to be incorporated into the proposed 2021 taxonomy, and finalized in the annual release process.

Effectiveness

The effective date of amendments to update 2017-08 varies depending on the type of entity.

For public business entities, amendments that are effective for fiscal years after December 15, 2020, as well as interim periods within years after December 15, 2020, and early application not permitted.

Amendments that are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, and early adoption permitted.

For more information, visit www.fasb.org