ASU 2016-04, Liabilities- Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage of Certain Period Stored –Value Products (a Consensus of the Emerging Issues Task Force) (Issued March 2016; effective December 15, 2017, for public entities)
This guideline provides public entities with the opportunity to apply the pending content in its financial statements. The public company can apply the changes retrospectively to each prior period in accordance to ASC 250-10-45-5 through to 45-10. In addition, the company can use the cumulative effect to adjust its retained earnings at the beginning of the financial year in which the content that links the paragraph is adopted. Finally, the company shall provide adequate disclosures concerning the pending content, which links the paragraphs (FASB, 2016).
FASB (2016). 405-21-65. Liabilities: Extinguishments of Liabilities; Transition and open effective date information. Retrieved from https://asc.fasb.org/section&trid=2144610&search_marker=searchresult&query=UkVDT0dOSVRJT04rT0YrQlJFQUtBR0U=%26para=77997009
The United States Securities and Exchange Commission (SEC). (2016). Apple Inc. Form 10-K. For the fiscal year ended September 24, 2016.