On June 3rd, the FASB announced that it has released a proposed Taxonomy Implementation Guide based on the 2022 US GAAP Financial Reporting Taxonomy related to disclosures about offsetting assets and liabilities.
The proposed Taxonomy Implementation Guide includes a summary and four examples of modeling that provides clarity to the process of reporting balance sheet offsetting under FASB Accounting Standards Codification Subtopic 210-20. The following are the examples provided in the guide:
Offsetting of Eligible Assets and Liabilities, Policy Election to Offset Obligation to Return Cash Collateral
Offsetting of Eligible Assets Disaggregated by Type of Financial Instrument, Type of Transaction and Type of Counterparty
Offsetting of Eligible Assets and Liabilities Disaggregated by Type of Transaction, Policy Election not to Offset Financial Instrument
Offsetting of Eligible Derivative Liabilities Disaggregated by Type of Instrument, Financial Instrument not Eligible to be offset
These examples are premised on whether the entity meets the criteria for reporting a balance sheet offsetting under US GAAP and/or SEC authoritative literature. Moreover, the reported line items in the examples represent only partial disclosures and statements for illustrative purposes and do not include all reporting conditions.
The public may submit comment related to the proposed guide until June 17, 2022. Interested parties may provide feedback via email at firstname.lastname@example.org.