Disaggregation—Income Statement Expenses

Last updated on October 11, 2022. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.

(Sections updated on the date above are indicated with an asterisk *)



The objective of the Disaggregation—Income Statement Expenses (formerly known as the Financial Performance Reporting—Disaggregation of Performance Information) project is to improve the decision usefulness of business entities’ income statements through the disaggregation of certain expense captions.


In February 2022 and July 2022, the Board decided that it would revise the scope and objective of the project to focus on improving the decision usefulness of business entities’ income statements through the disaggregation of any relevant expense line items.

Exposure Draft:

There are no exposure documents at this time.

There are no media releases or educational materials at this time.

Decisions Reached at Last Meeting (October 5, 2022)

The Board continued its initial deliberations by discussing the disaggregation approach for income statement expenses.

Disaggregation Approach
The Board decided to pursue an expense disaggregation approach whereby an entity would be required to reconcile any disaggregated information to the relevant expense caption presented in the income statement. The Board decided not to require disclosure in total for any additional specific expenses or costs incurred.
Project Scope
The Board decided to refine the project’s scope to include any relevant expense line items. That means that the project’s scope applies to any expense line items on the income statement that contain certain types of underlying information. Those expense captions would be required to be disaggregated, depending on the types of underlying expenses the Board later decides to require. Additionally, the Board directed the staff to focus its research on all business entities.
Selling Expenses
The Board directed the staff to perform additional research on the separate presentation or disclosure of selling expenses. The Board indicated that the staff should not pursue developing a definition of selling expenses.

Cumulative Tentative Board Decisions Reached to Date (since February 16, 2022)

A summary of the Board’s tentative decisions reached since February 16, 2022 can be found here.

Reached Before the Scope and Objective Revision (before February 16, 2022)

A summary of the Board’s tentative decisions reached before February 16, 2022 can be found here.

The Board meeting minutes, handouts, and videos are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.

The following are links to the minutes for each meeting. To view Board meetings and handouts from the past 90 days, click here.
October 5, 2022* Board MeetingThe Board refined the project’s scope and decided to continue focusing on expense disaggregation.
July 27, 2022 Board MeetingThe Board discussed the feedback received through various outreach efforts and the project’s next steps.
February 16, 2022 Board MeetingThe Board revised the scope and objective of the project.

See below for decisions made before the revision of the scope and objective of the project.
December 11, 2019 Board MeetingDiscussed feedback received from stakeholder outreach on the internal view approach to disaggregation and the path forward for the project.
April 24, 2019 Board MeetingDiscussed an internal view approach to disaggregating expense information and related alternatives.
December 19, 2018 Board MeetingDiscussed the feedback received during outreach with entities on their system capabilities to disaggregate income statement line items.
March 28, 2018 Board Meeting—Discussed the staff’s suggested terminology to describe the lines from the income statement to be the focus of the disaggregation.
December 13, 2017 Board Meeting—Discussed the project plan and research relating to the presentation and disaggregation of functional and natural information in the performance statements of private companies.
September 20, 2017 Board Meeting—Added a project on the disaggregation of performance information to the technical agenda. The Board decided to retain the issue of structuring the performance statement by developing an operating performance measure on the research agenda.

The Board discussed the project’s next steps and directed the staff to perform additional research, including on which types of underlying categories should be provided when disaggregating income statement expenses, as part of initial deliberations.

Mary Mazzella
Assistant Director
Chris Bohdan
Project Manager
Michael Lupo
Project Manager

Julie Um
Project Manager

Gary Sardo
FASB Practice Fellow

Sarah Wasikowski
Postgraduate Technical Assistant

Justin Chudzik
Postgraduate Technical Assistant

The staff has prepared this summary for information purposes only. Any Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.