On April 7, 2015, the FASB issued Accounting Standards Update 2015-03 on debt issue costs. It goes into effect for periods beginning after December 15, 2015 with early adoption permitted. As a result, it is theoretically eligible for testing on the CPA Exam in October or November of 2015.

According to the FASB Accounting Standards Update, Accounting Standards Update No. 2015-03, InterestImputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, The Board is issuing this Update as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The objective of the Simplification Initiative is to identify, evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements.

Furthermore, To simplify presentation of debt issuance costs, the amendments in this Update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update.