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FASB PROJECT: ACCT 310 2
Cherry Bekaert LLP. (2017, January 16). FASB Proposes Changes to Balance Sheet
https://www.cbh.com/guide/articles/fasb-proposes-changes-to-balance-sheet-
debt-classification-and-inventory-disclosures/
news release affecting debt balance sheet grading and inventory reporting requirement under
its Project for Disclosures in the context of the FASB. The FASB proposes streamlining the
existing guidelines for debt cataloguing with a coherent, all-inclusive principle that discusses
the borrower's pledged obligations and rights. The adjustments anticipated could change how
such debt structures are categorized between current liabilities and non-current liabilities.
Disclosure system — Inventory: The FASB requires businesses to report additional inventory
purchase, or sale.
Cohn, M. (2017, January 11). FASB proposes changes on debt classification and
https://www.accountingtoday.com/news/fasb-proposes-changes-on-debt-
classification-and-inventory-disclosures
and debt classification. The FASB has developed a couple of proposed debt classification
amendments (non-current versus current) and changes to the inventory disclosure criteria as
per the Disclosure System. The first proposed change focuses on improving financial
reporting by modifying the current FASB guidelines to decide whether debt must be
categorized on a labeled balance sheet as non-current and current. It will substitute a general
FASB PROJECT: ACCT 310 3
debt classification concept adapted to a creditor's contractual rights and duties on the current
Miller GAAP Update Service; Riverwoods. (2017, September 15). Inventory (Topic 330):
https://search.proquest.com/docview/1857228065?accountid=201395
According to this trade journal, the FASB proposes to increase the usefulness of
details private and public reveal about inventory. Although several businesses would have to
include additional details in the proposal, The FASB's key proposed reform involves the
retail accounting process. Companies, not companies. It is possible that the proposed
incremental disclosures are not especially significant or expensive to apply the retail
accounting approach for inventories. Several of the GAAP requirement modifications are
proposed to constitute inventory details currently required by the SEC regulations. Therefore,
with one major exception, the plan must comply with private and public corporations'
inventory disclosures. Unless such information is given to the organization's head operating
decision-maker, public corporations are required, under the proposal, to disclose inventory
Targeted News Service; Washington, D.C. (2017, January 10). FASB Issues Proposed
Inventory. ProQuest.
https://search.proquest.com/docview/1857228065/171FB1D7A3CA444APQ/1
(Accounting Standards Updates), the proposed ASU aims to enhance financial reporting by
FASB PROJECT: ACCT 310 4
current. The present factual guidance will be replaced by a consistent overarching debt
classification concept, which focuses on a creditor's contract rights and responsibilities at the
reporting date. The proposed ASU forms part of FASB's wider system for the filing of
https://www.journalofaccountancy.com/news/2017/jan/fasb-debt-classification-
inventory-disclosures-201715819.html
sheets and inventory disclosure criteria underneath the Board's System for Disclosure. The
current. The anticipated guidelines would substitute the current fact-specific rules with a
coherent, overarching debt classification concept that focuses on the contract rights and
responsibilities of a creditor that exist at the time of reporting. According to the proposal,
whether the creditor obtains a waiver earlier than the financial statements are released or are
available, or whether the waiver satisfies certain requirements, the borrower will still
recognize the debt as not current when the debt agreement breach has been terminated.