FASB proposes codification improvements and taxonomy guides
The Financial Accounting Standards Board (FASB) has released a proposed Accounting Standards Update (ASU) as part of its ongoing effort to enhance the FASB Accounting Standards Codification®. Published last week, the proposal aims to make targeted, incremental improvements to US Generally Accepted Accounting Principles (GAAP). The update addresses 34 issues, including clarifications on earnings per share calculations, receivables from contracts with customers, and accounting by not-for-profits. Stakeholders have until 22 April to provide feedback.
In a related move, FASB staff has also issued two proposed Taxonomy Implementation Guides based on the 2025 GAAP Financial Reporting Taxonomy. One guide, Accounting Changes, introduces examples illustrating the modelling of disclosures related to changes in accounting estimates. The second, Segment Reporting, supports the implementation of Accounting Standards Update 2023-07, providing guidance on segment disclosure requirements. The comment deadlines are 21 February for the accounting changes guide and 25 March for the segment reporting guide.
These initiatives are part of FASB’s general goal to ensure GAAP remains relevant, clear, and accessible. Regular Codification improvements support financial reporting quality by refining definitions and clarifying guidance. Meanwhile, updates to the GAAP taxonomy facilitate consistent digital reporting, ensuring structured data remains aligned with evolving disclosure requirements.
For further details or to submit comments, see more on the FASB website on the codification improvements, Accounting Changes guide, and Segment Reporting guide.
