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FASB issues two final ASUs and one proposed ASU based on EITF Issues

  • FASB document Image

May 01, 2015

The FASB has issued two final Accounting Standards Updates (ASUs) in response to the EITF’s consensuses on Issues 14-A and 14-B as well as a proposed ASU in response to the Task Force’s consensus-for-exposure on Issue 15-B.

Final ASU on historical earnings per unit of master limited partnerships

This ASU amends ASC 260 to “specify that for purposes of calculating historical earnings per unit under the two-class method, the earnings (losses) of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner.” The guidance in this ASU is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted.

Final ASU on disclosures for investments that are measured by using net asset value per share

Under this ASU, investments for which the practical expedient is used to measure fair value at NAV must be removed from the fair value hierarchy. Instead, those investments must be included as a reconciling line item so that the total fair value amount of investments in the disclosure is consistent with the amount on the balance sheet. Further, the ASU requires entities to provide certain disclosures only for investments for which they elect to use the NAV practical expedient to determine fair value.

The guidance in this standard is effective for interim and annual periods beginning after December 15, 2015 (entities that are not public business entities are granted an additional year). Early adoption is permitted.

Proposed ASU on the derecognition of prepaid stored-value card liabilities

This proposal contains a narrow scope exception to the liability derecognition guidance on accounting for the unused portion of a card’s prepaid value, commonly referred to as “breakage.” Comments on this proposal are due by June 29, 2015.

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.