Defining Issues | June 2024
FASB completes its initial deliberations on targeted accounting and disclosure improvements.
A proposed ASU with a 90-day public comment period is expected as a next step in the near term. The proposed ASU will include targeted improvements to the internal-use software accounting requirements in ASC 350-40 and require cash outflows for capitalized internal-use software to be separately presented within the investing section of the statement of cash flows.
The proposed ASU would permit either prospective or retrospective transition. Prospective transition would require applying the amendments to all internal-use software costs incurred after the adoption date, including those incurred on new and existing software projects. Entities would make the transition disclosures required by ASC 250 other than those in ASC 250-10-50-1(b)(2) and 50-1(b)(4).
Effective date(s) of any final ASU will not be suggested in the proposed ASU; they will be decided later.
The Board directed the staff to draft a proposed ASU, which will have a 90-day public comment period.
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