Tentative Board decisions are provided for those interested in following the Board’s deliberations. All of the reported decisions are tentative and may be changed at future Board meetings.

Wednesday, July 27, 2022 FASB Board Meeting

Segment reporting. The Board discussed feedback from the external review of the staff draft of the proposed Accounting Standards Update.

The Board also discussed two potential disclosures and a sweep issue that was identified from the external review of the staff draft. The Board made the following decisions:

Title and Position of the Chief Operating Decision Maker (CODM)

The Board decided to require that a public entity disclose the title and position of its CODM.

Disclosure If No Significant Expense Categories and Amounts Are Disclosed

The Board had previously decided to require that a public entity disclose segment expenses under a significant expense principle.

At this meeting, the Board decided that a public entity should disclose the nature of the expense information that the CODM uses to manage operations if the entity does not disclose significant expense categories and amounts under the significant expense principle for one or more of its reportable segments.

Disclosure of Multiple Measures of a Segment’s Profit or Loss

The Board decided to permit a public entity to report multiple measures of a segment’s profit or loss. In those cases, at least one of the reported measures of a segment’s profit or loss should be a measure that management determines in accordance with the measurement principles as the most consistent with those used in measuring the corresponding amounts in the consolidated financial statements. The Board clarified that existing disclosures in paragraphs 280-10-50-22 through 50-24, the proposed significant expense principle, and existing reconciliation requirements in paragraph 280-10-50-30(b) would apply to all disclosed segment measures.

Analysis of Costs and Benefits

The Board concluded that it has received sufficient information and analysis to make an informed decision on the expected costs of the amendments in the proposed Update and that the expected benefits of those amendments would justify the expected costs.

Next Steps

The Board directed the staff to draft a proposed Accounting Standards Update for vote by written ballot.

The Board decided on a 75-day comment period for the proposed Update.

Disaggregation—income statement expenses. The Board discussed the feedback received through various outreach efforts and the project’s next steps.

Interim reporting—narrow-scope improvements. The Board continued redeliberations on the proposed Accounting Standards Update, Interim Reporting (Topic 270): Disclosure Framework—Changes to Interim Disclosure Requirements. The Board decided that a disclosure principle should be developed leveraging the language (including the deleted language) in U.S. Securities and Exchange Commission Regulation S-X, Rule 210.10-01(a)(5), Interim Financial Statements—Condensed Statements. The Board provided suggestions on, and observations about, the methodology for identifying the population of disclosures to be analyzed for possible addition to Topic 270.