Removal of References to FASB Concepts Statements
Date: March 2024
Who does it affect
All reporting entities (public and private).
When does it come into effect
• For public business entities: Fiscal years beginning after December 15, 2024.
• For all other entities: Fiscal years beginning after December 15, 2025.
• Early adoption is permitted.
The change
This update removes references to the FASB Concepts Statements from the Codification. These references were largely unnecessary and could lead to confusion, implying that Concepts Statements are authoritative when they are not. This change simplifies the Codification by eliminating such references and clarifies the distinction between authoritative and non-authoritative literature.
How were things before
Entities referred to the Concepts Statements (like Concepts Statement No. 6) in certain areas of the Codification for guidance on definitions and criteria (e.g., definitions of assets, liabilities, and financial instruments).
How are things now
All references to the Concepts Statements have been removed from the Codification. Entities now rely solely on authoritative GAAP guidance without reference to the non-authoritative Concepts Statements.
Disclaimer
The content provided on this blog is for informational purposes only and reflects the personal views and opinions of the authors. It is not intended to serve as professional accounting, financial, or legal advice. While we strive to ensure the accuracy of the information presented, we make no guarantees regarding its completeness or relevance to specific situations. Always consult with a certified accountant, financial advisor, or legal professional before making decisions based on the information provided. For authoritative guidance, refer to official sources, such as the IRS, FASB, or your local regulatory bodies.
