FASB technical corrections, conforming amendments to “codification” 

October 12:  The FASB recently issued an Accounting Standards Update (ASU) to correct minor technical errors in the “codification.”

The FASB also made amendments in certain areas of the “codification” to conform that guidance to the definition of fair value.


The FASB believes the changes will not significantly affect current accounting practice or require significant costs to implement.


The technical corrections fall into three categories:


  • Source literature amendments—that bring forward wording from legacy U.S. GAAP that may have been unintentionally altered during the “codification” process
  • Guidance clarification and reference corrections— that update wording and references to ensure appropriate application and interpretation
  • Relocated guidance—that moves sections of the “codification” to more appropriate locations to avoid potential scope misinterpretations

The conforming fair value amendments apply to certain literature that was not updated when the fair value guidance was originally issued.


These amendments update the “codification” to conform it to the prevailing fair value measurement and disclosure requirements and make the definition of fair value more consistent.


Read an October 2012 report [PDF 77 KB] prepared by KPMG LLP: Defining Issues: FASB Makes Technical Corrections and Conforming Amendments to Codification




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©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

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