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FASB issues two proposed ASUs

  • FASB (US Financial Accounting Standards Board) Image

Oct 14, 2014

As part of its simplification initiative, the FASB has issued the following proposed ASUs: (1) "Simplifying the Presentation of Debt Issuance Cost" and (2) "Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets." Comments on both proposals are due by December 15, 2014.


Presentation of debt issuance costs

This proposal would change the presentation of debt issuance costs in the financial statements. Under the proposal, an entity would present such costs in the balance sheet as a direct deduction from the debt liability in a manner consistent with its accounting treatment of debt discounts. Amortization of the issuance costs would be reported as interest expense.

For more information, see the related Heads Up as well as the proposed ASU on the FASB’s Web site.


Measurement date for plan assets

This proposal would “provide a practical expedient for employers with fiscal year-ends that do not fall on a month-end by permitting those employers to measure defined benefit plan assets and obligations as of the month-end that is closest to the entity’s fiscal year-end and to follow that measurement date methodology consistently from year to year.”

For more information, see the related Deloitte Accounting Journal entry as well as the proposed ASU on the FASB’s Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.