PROJECT UPDATE

Disclosure Improvements in Response to the SEC’s Release on Disclosure Update and Simplification

Last updated on July 6, 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 this project is to determine whether and how SEC disclosure requirements referred to the Board as part of the SEC’s Disclosure Update and Simplification initiative should be incorporated into the Codification.
 

Background:

On July 13, 2016, the SEC proposed amendments to certain of its disclosure requirements that it believed were duplicative, overlapping, or outdated in light of other SEC disclosure requirements, the FASB Codification, or changes in the information environment. The SEC received comment letters from stakeholders on several disclosures that overlap with, but require information incremental to, GAAP that assisted the SEC in determining whether to retain, modify, eliminate, or refer those disclosure requirements to the Board for potential incorporation into the Codification. On August 17, 2018, the SEC voted to adopt amendments to its disclosure requirements based on comment letter feedback on the proposed amendments. Upon adopting those amendments as part of the final rule, the SEC formally referred certain disclosure requirements to the Board to be considered for incorporation into the Codification (the referred disclosures).

The SEC has requested that the Board consider the referred disclosures as part of its normal standard-setting process. On March 6, 2019, the Board decided to add a project to its technical agenda to address the referred disclosures.

Exposure Draft(s):

On May 6, 2019, the Board issued proposed Accounting Standards Update, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. The due date for comment letters was June 28, 2019.
  • Download the May 6, 2019 proposed Accounting Standards Update, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.

Comment Letters:


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

Decisions Reached at Last Meeting (March 6, 2019):


The Board decided to add a project to its technical agenda to address disclosures referred to the Board as part of the SEC’s Disclosure Update and Simplification initiative.

The Board decided to incorporate the following referred disclosures into the Codification for all entities: foreign currency, derivative accounting policies, technical correction for investment companies, real estate investment trusts, consolidations, assets subject to liens, preferred shares, repurchase and reverse repurchase agreements, earnings per share in interim periods, changes in reporting entity in interim periods, common control transactions in interim periods, products or services, oil- and gas-producing activities, and debt.

The Board decided to incorporate the referred disclosure on intra-entity profits and losses of related party transactions in separate financial statements into the Codification for public business entities only.

The Board decided not to incorporate the following referred disclosures into the Codification: equity compensation plans, discounts on shares, major customers, authorized amount of debt, and financial statement presentation of related party transactions.

Transition

The Board decided that an entity should apply the amendments prospectively. The Board decided not to require any transition disclosures.
 

Tentative Board Decisions Reached to Date (as of March 6, 2019):

 
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 .
 
March 6, 2019 Board Meeting —The Board added the project to its technical agenda and discussed whether and how SEC disclosure requirements referred to the Board by the SEC should be included in the Codification.

The comment period closed on June 28, 2019, and the Board will consider comment letter feedback on the proposed Update.

Tiffany Wyszkowski
Project Manager
twyszkowski@fasb.org

Katie Deakins
Postgraduate Technical Assistant
kdeakins@fasb.org

Emma Gough
Postgraduate Technical Assistant
egough@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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