Thursday, November 18. 2021
FASB Seeks Comment on Proposed Improvements for the 2022 US GAAP GRT Reference Project and Proposed Accounting Standards Update on Interim Financial Disclosure Requirements
Proposed Improvements for the 2022 US GAAP GRT Reference Project
The improvements to the references are designed to make it easier to locate appropriate elements and strengthen the intended use of the elements. The proposed updates would also clarify the role type assigned to references and reduce inconsistencies in application.
The proposed taxonomy improvements related to new and revised reference additions and deletions are a result of the 2022 US GAAP GRT Reference Project. Reference roles have been added both to assist in understanding how the elements relate to the reporting requirements and to identify which elements explicitly meet the disclosure requirements and which elements are not specifically required. The following are some of the proposed changes:
- reference additions for elements that meet presentation and disclosure requirements from certain FASB Accounting Standards Codification paragraphs in sections 45, 50, and S99 of certain topics
- reference role additions to assist in understanding how elements relate to the reporting requirements
Only annual compilations of the US GAAP Financial Reporting Taxonomy that are specified on the SEC’s website may be used in SEC XBRL submissions. The availability for public comment of the proposed US GAAP GRT improvements does not indicate SEC approval of any potential regulatory changes related to the EDGAR Filer Manual. Visit the SEC’s EDGAR webpage for updated information on when the SEC approves changes, if any, related to the EDGAR Filer Manual.
Accounting Standards Update on Interim Financial Disclosure Requirements
The proposed ASU is part of the FASB’s disclosure framework project to enhance the efficacy of disclosure in the notes to financial statements. The updates are intended to clarify the application of accounting principles in accordance with GAAP by:
- developing a framework that promotes consistent FASB decisions about disclosure requirements
- requiring reporting entities to exercise discretion appropriately in what information is included in the notes
- removing phrases such as “for each period presented” and instead refer to making comparative disclosures when comparative statements are presented
- clarifying when comparative disclosures are required
- including a transition element for ASU adoption
Proposed improvements related to the proposed ASU on interim reporting disclosures requirements would modify the disclosure requirements for interim reporting in FASB Accounting Standards Codification Topic 270, adding the following mandates:
- entities must refer readers of interim financial statements and notes to the previous annual financial statements when providing condensed financial statements or limited notes
- entities must state that Topic 270 contains all interim reporting requirements and/or references to interim reporting requirements detailed in other Topics
- entities must, if applicable, explain that interim results may not be indicative of the annual results or that adjustments have been made to the period to provide a more relevant depiction of the entity’s results
The FASB will determine the date amendments for the ASU will go into effect and consider if early adoption should be permitted after it evaluates constituents’ responses to the amendments in the proposed update.
The FASB is seeking feedback related to the proposed ASU on interim reporting through January 31, 2022. Interested parties may submit comments using the Exposure Documents Open for Comment feedback document on fasb.org, via email to firstname.lastname@example.org (refer to File Reference No. 2021-001), or by mail to Technical Director, File Reference No. 2021-001, FASB, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116. All comments received are part of the FASB’s public file and made available at fasb.org.