FASB Codification Guide-2

In some cases early adoption also called early

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Unformatted text preview: itation of the Codification paragraph containing transition guidance (for example, ―810-10-65-1‖). The numeric citation link is clearly labeled ―Transition Guidance.‖ Accessing the transition guidance for specific pending content is simply a matter of clicking the “Transition Guidance” link in the “Pending Content” box. By clicking the link, you will go to the individual Section page containing the transition guidance paragraph and the page will be automatically scrolled down to the start of the paragraph. Go to paragraph 924-605-25-2. Observe the “Pending Content” box beneath the current content. Try It Now Go to paragraph 924-605-25-2. Click the link to the Transition Guidance paragraph 924605-65-1. COMPREHENDING TRANSITION GUIDANCE The transition guidance that is associated with pending Codification content specifies the transition date(s) and any other special accounting/reporting provisions that apply to the implementation of the pending content by reporting entities. A transition date represents the point in time after which reporting entities must implement the associated pending content. As specified in the transition guidance, implementation may pertain to transactions or events occurring after the transition date or to annual or interim reporting periods beginning or ending after the transition date. In some cases, early adoption (also called ―early application‖) of pending content is permitted, which allows the content to be implemented before it is required. In such cases, transition guidance may specify a transition date for early adoption as well as a transition date by which reporting entities must implement the associated pending content. Transition guidance often specifies the transition method(s) that must or may be applied by reporting entities when they adopt the pending content. For example, entities might be required or allowed to apply a change in accounting prospectively, retrospectively, or in some other way. In general, transiti...
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