FASB Codification Guide-2

The intent of the pending content boxes is to provide

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Unformatted text preview: d. Additionally, Helena learns from the transition guidance what her company will be required to do upon adoption. She decides that her company will not adopt the change earlier than is required, and she notifies the analyst at the credit-rating agency accordingly, making sure to adhere to the fair value disclosure provisions of SEC regulations. Learning Outcomes In the scenario above, Helena used the System to review pending Codification content and its associated transition guidance. This lesson will help you learn to do what Helena did, specifically: Distinguish pending content from current content in the Codification Access the transition guidance associated with pending content Comprehend the transition guidance associated with pending content. Lesson 7: Working with Pending Content 71 ABOUT PENDING CONTENT Many changes to the content of the Codification do not take effect immediately upon issuance of an update. After a content update is approved both the current paragraph and the updated paragraph will reside in the Codification until such time that the new guidance is completely effective for all entities. During that period, the System will emphasize the newly amended paragraph as pending content and will provide a link to the related transition guidance. The intent of the pending content boxes is to provide users with information about how a paragraph will change when new guidance becomes authoritative. At any given point in time, the Codification’s content includes both current and pending content. Pending content has one or more transition dates associated with it. A transition date is the date on which a reporting entity must implement the updated content. Different transition dates may apply to different kinds of reporting entities, as determined by the standard setter. Transition dates are sometimes called effective dates. Codification Updates The Codification is formally updated through the issuance of Accounting Standards Updates (ASUs) and Maintenance Updates (MUs), which are described in L...
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