Update No. 2010-08—Technical Corrections to Various Topics

From time to time, the Financial Accounting Standards Board (FASB) reviews its standards to determine if any provisions are outdated, contain inconsistencies, or need clarifications.  On February 2, 2010, the FASB issued Accounting Standards Update (ASU) 2010-08, Technical Corrections to Various Topics, which eliminates those inconsistencies and outdated provisions and provides the needed clarifications.  The changes are generally nonsubstantive in nature and will not result in pervasive changes to current practice.  However, the amendments that clarify the guidance on embedded derivatives and hedging (Subtopic 815-15) may cause a change in the application of that Subtopic. 

The clarifications of the guidance on embedded derivatives and hedging (Subtopic 815-15) are effective for fiscal years beginning after December 15, 2009, and special transition provisions are provided for those amendments.  The amendments to the guidance on accounting for income taxes in a reorganization (Subtopic 852-740) applies to reorganizations for which the date of the reorganization is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008.  All other amendments are effective as of the first reporting period (including interim periods) beginning after February 2, 2010.