November 12, 2020

The Small Business Advisory Committee (SBAC) met virtually on November 12, 2020. At the meeting, the SBAC members provided input on the following topics:
  • Leases: Implementation and Targeted Improvements
    SBAC members shared their implementation experiences and progress on the implementation of Topic 842, Leases. Members also discussed the complexities and challenges in certain areas, including the precision required to determine the incremental borrowing rate and getting the initial implementation infrastructure in place. Members observed that the subsequent application effort is expected to be much less significant going forward as sufficient processes are in place to comply with Topic 842.
  • Reference Rate Reform
    SBAC members provided feedback on their progress transitioning away from LIBOR and other reference rates expected to be discontinued as a result of reference rate reform. Members shared that they were at different stages in their transition. Some had not begun their transition efforts, yet others had developed an initial inventory of the contracts that would be affected.
  • Disclosure Framework: Disclosures–Interim Reporting
    SBAC members expressed different views on whether removing disclosure requirements from Topic 270, Interim Reporting, based on the catch-all principle, would affect interim reporting processes or effectiveness. Some members did not expect that this potential change would result in a reduction in interim reporting disclosures. One member commented that this potential change would give management an opportunity to assess what needs to be disclosed during the interim period and would improve the reporting effectiveness. Another member emphasized the importance of minimum standard quantitative disclosures in interim reporting.
For more information the Small Business Advisory Committee, visit the FASB website.