FASB's new ASU on extraordinary items brings US GAAP guidance closer to IAS 1

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11 Jan 2015

The US Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) 2015-01 'Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items'.

The FASB released the new guidance as part of its simplification initiative, which is intended to "identify, evaluate, and improve areas of [US] GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements". At the same time, the update will align more closely US GAAP income statement presentation guidance with IAS 1 Presentation of Financial Statements, which prohibits the presentation and disclosure of extraordinary items since re-issuing the standard in 2003, effective 2005.

For more information, see Deloitte's Heads Up newsletter as well as the ASU on the FASB's website.

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