On October 28, the Financial Accounting Standards Board (FASB) staff released for public review and comment proposed GAAP Taxonomy improvements and related release notes to reflect proposed Accounting Standard Updates (ASUs).
Should the proposed ASUs be adopted, they would result in the following changes:
Revenue from Contracts with Customers (Topic 606): Consideration Payable to a Customer
- Clarify that payments made on behalf of a customer, or to a customer of an entity’s customer, should be accounted for as consideration payable to a customer under Topic 606. Interested parties may comment on the proposed improvements through November 23, 2026.
Investments—Equity Method and Joint Ventures (Topic 323): Equity Method of Accounting—Targeted Improvements
- Improve the operability of accounting for equity method investments in Topic 323, which was developed in response to key challenges identified through the FASB's 2025 Invitation to Comment, Agenda Consultation. Interested parties may comment on the proposed improvements through January 11, 2027.
Interested parties may send feedback to FASB at xbrled@fasb.org.
Click here to view the release notes for proposed taxonomy improvements for the Investments-Equity Method and here for taxonomy improvements for Revenue from Contracts.
Source:
FASB GAAP Taxonomy Improvements for Investments-Equity Method and Revenue from Contracts (xbrl.us)
