PROJECT UPDATE

Interim Reporting—Narrow-Scope Improvements

Last updated on July 29, 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 *)

 

Objective:

The objective of the Interim Reporting—Narrow-Scope Improvements (formerly known as the Disclosure Framework: Disclosures—Interim Reporting) project is to improve the Codification guidance in Topic 270, Interim Reporting, by clarifying when the guidance in Topic 270 is applicable and improving the navigability of the required interim disclosures.

Background:

This project began as part of the overall disclosure framework project in 2014. The objective of the disclosure framework project was to improve the effectiveness of disclosures in notes to financial statements by facilitating clear communication of the information required by generally accepted accounting principles (GAAP) that is most important to users of financial statements. The Board reviewed the disclosure requirements in Topic 270 considering the disclosure framework in FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting—Chapter 8, Notes to Financial Statements, and decided not to add or remove any disclosures on the basis of that assessment. However, the Board identified some improvements that could be made to Topic 270.

On November 1, 2021, the Board issued proposed Accounting Standards Update, Interim Reporting (Topic 270): Disclosure Framework—Changes to Interim Disclosure Requirements. The amendments in that proposed Update would improve Topic 270 by:

  1. Introducing a principle to Topic 270 that is based on the removed portion of Regulation S-X, Rule 10-01, Interim Financial Statements.
  2. Providing requirements about the form and content in financial statements as part of an entity’s interim reporting, which is not currently included in Topic 270
  3. Including all interim disclosure requirements or references to interim reporting requirements in Topic 270 and clarifying when comparative disclosures are required
  4. Eliminating the phrase as a minimum and adding proposed language to promote that entities should use discretion when considering the need to provide interim disclosures
  5. Clarifying that assessing which disclosures to provide at interim periods involves considering information provided at the previous annual period.
In May 2022, the Board renamed the project Interim Reporting—Narrow-Scope Improvements to communicate the project’s objective more clearly. In that meeting, the Board also reaffirmed its decision to improve the Codification guidance in Topic 270 by continuing to develop the amendments in the proposed Update during redeliberations.

On November 1, 2021, the Board issued a proposed Accounting Standards Update, Interim Reporting (Topic 270): Disclosure Framework—Changes to Interim Disclosure Requirements. The due date for comment letters was January 31, 2022.
  • Download the proposed Accounting Standards Update, Interim Reporting (Topic 270): Disclosure Framework—Changes to Interim Disclosure Requirements.
  • Read comment letters on the proposed Accounting Standards Update.

  • Read the press release on the proposed Accounting Standards Update

Decisions Reached at Last Meeting (July 27, 2022):

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.

Tentative Board Decisions Reached to Date (as of July 27, 2022):


A summary of decisions reached to date 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.

July 27, 2022* Board Meeting—Interim Reporting—Narrow- Scope Improvements
May 25, 2022 Board Meeting—Interim Reporting—Narrow- Scope Improvements
July 14, 2021 Board Meeting—Disclosure Framework—Interim Reporting
December 16, 2020 Board Meeting—Disclosure Framework—Interim Reporting
August 19, 2020 Board Meeting—Disclosure Framework—Interim Reporting
September 18, 2019 Board Meeting—Disclosure Framework—Interim Reporting
July 11, 2018 Board Meeting—Disclosure Framework—Interim Reporting
January 7, 2015 Board Meeting—Disclosure Framework—Interim Reporting
May 28, 2014 Board Meeting—Disclosure Framework—Interim Reporting

The Board will continue redeliberations of the amendments in the proposed Update.

Jill Switter
Senior Project Manager
jmswitter@fasb.org

Regenia Cafini
Project Manager
rdcafini@fasb.org

Ally Gustke
Postgraduate Technical Assistant
agustke@fasb.org

Andrew Alber
Postgraduate Technical Assistant
aalber@fasb.org

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.
 

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