Norwalk, CT, December 14, 2016—The Financial Accounting Standards Board (FASB) today issued an Accounting Standards Update (ASU) that clarifies and removes inconsistencies in key areas of U.S. Generally Accepted Accounting Principles (GAAP).

The provisions in the ASU impact several topical areas in the FASB Accounting Standards Codification®. Most of the amendments are effective immediately; others take effect for interim and annual reporting periods beginning after December 15, 2016.

"While narrow in scope, the technical changes in the ASU are intended to make it easier to understand and implement guidance across important areas of GAAP," noted FASB Chairman Russell G. Golden. "We encourage stakeholders to review the new provisions."

The amendments in the ASU apply to all reporting organizations—including public companies, private companies, and not-for-profit organizations—within the scope of the affected accounting guidance. For that reason, reporting organizations should review all provisions of the new standard to ensure compliance with the ones that apply to them.

While not a complete list of provisions contained in the ASU, the following amendments affect all companies and organizations: A complete list of the amendments—including full details on transition and effective dates—is contained in the ASU, available at www.fasb.org.

About the Financial Accounting Standards Board

Established in 1973, the FASB is the independent, private-sector, not-for-profit organization based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP). The FASB is recognized by the Securities and Exchange Commission as the designated accounting standard setter for public companies. FASB standards are recognized as authoritative by many other organizations, including state Boards of Accountancy and the American Institute of CPAs (AICPA). The FASB develops and issues financial accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to investors and others who use financial reports. The Financial Accounting Foundation (FAF) supports and oversees the FASB. For more information, visit www.fasb.org.