FASB proposes multiple taxonomy updates to enhance financial reporting

Posted on September 6, 2024 by Editor

Over the summer the Financial Accounting Standards Board (FASB) published a number of proposed updates and improvements to the GAAP Financial Reporting Taxonomy, inviting public feedback to refine these standards and enhance the clarity and consistency of financial reporting. Although the feedback period for these updates is now closed, the proposed changes are worth noting.

Proposed Taxonomy Implementation Guide on Income Taxes (Topic 740):

The FASB staff has issued a proposed Taxonomy Implementation Guide for Income Taxes (Topic 740), based on the 2024 GAAP Financial Reporting Taxonomy. This guide aims to assist companies in modeling income tax reporting in a way that aligns with FASB Accounting Standards Codification Topic 740.

Reexposed Proposed GAAP Taxonomy Improvements for Disaggregation of Income Statement Expenses (Subtopic 220-40):

FASB has re-exposed for comment proposed GAAP Taxonomy Improvements aimed at enhancing disclosures around income statement expenses. These changes are part of an update under Subtopic 220-40, focusing on providing more detailed information about expenses in financial statements. The reexposure includes illustrative tagging examples and a new presentation relationship group.

Proposed GAAP Taxonomy Improvements Related to Income Statement Expense Disaggregation:

FASB has also reissued proposed improvements to the GAAP Taxonomy to enhance the disaggregation of income statement expenses. This proposal, which aims to address investor demand for more granularity in expense reporting, included a 30-day comment period.

Proposed GAAP Taxonomy Style Guide for References:

The FASB staff recently issued a proposed GAAP Taxonomy Style Guide, Reference Style Guide, to help ensure consistent use of references and reference roles within the GAAP Financial Reporting Taxonomy and the SEC Reporting Taxonomy. The Style Guide provides detailed instructions on assigning references and roles to elements.

You can find a list of proposed taxonomy improvements on the FASB website.

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