FASB - Proposed standards to remove extraordinary item classification 

July 18:  The FASB, at a July meeting, released two proposed accounting standards updates (ASU) intended to reduce the unnecessary complexity in U.S. GAAP and more closely align U.S. GAAP with the comparable IFRS standards:
  • A proposed ASU on inventory would change the measurement principle from the lower of cost or market to lower of cost and net realizable value.
  • A proposed ASU on extraordinary items would eliminate the need for entities to evaluate whether transactions or events are both unusual in nature and infrequently occurring.

The comment period for both exposure drafts ends September 30, 2014.

Read a July 2014 report [PDF 646 KB] prepared by the KPMG LLP: Defining Issues: FASB Issues Two Exposure Drafts for Simplification Initiative

©2014 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.

Share this

Share this


Current and future KPMG clients may subscribe to TaxNewsFlash email alerts.

Email your contact information.

TaxNewsFlash-United States by year