FASB Holds First Discussion on Agenda Consultation Feedback
Norwalk, CT, December 15, 2021—Earlier today, the Financial Accounting Standards Board (FASB) discussed stakeholder feedback received on its June 2021 Invitation to Comment, Agenda Consultation (ITC). Additionally, the Board discussed the FASB staff’s plan for next steps to address that feedback.
The purpose of the ITC was to solicit broad stakeholder feedback about the future standard-setting agenda of the FASB. The feedback on the ITC is essential in ensuring that the FASB continues to allocate its finite resources to achievable standard-setting projects that fulfill its primary mission of improving financial accounting and reporting standards and addressing topics that are of the highest priority to its stakeholders.
All feedback received from the ITC will be discussed with the Board, including feedback related to existing projects on the Board’s technical agenda. Areas of significant feedback from investors will be prioritized. For example, the investor feedback on disaggregation of financial information in the income statement and statement of cash flows, which was discussed at today’s meeting, will be further discussed in early 2022 and will be an important input as the Board shapes the future direction of its project on financial performance reporting. In addition, the Board will consider adding new projects to the technical agenda, as well as potential changes to existing projects based on feedback received.
Changes to the FASB Research Agenda
In response to feedback received on the ITC, FASB Chair Rich Jones announced comprehensive changes to the FASB research agenda. The research agenda is established by the FASB chair and includes projects that may be added to the technical agenda in the future if consensus is reached by a majority of the Board members based on their evaluation of established agenda criteria.
The FASB’s research agenda will be comprised of the following projects (in no particular order):
- Accounting for Exchange-Traded Digital Assets and Commodities—This research project will explore accounting for and disclosure of a subset of exchange-traded digital assets and exchange-traded commodities.
- Accounting for and Disclosure of Intangibles—This research project will consider potential ways to improve the accounting for and disclosure of intangibles, including software costs, internally developed intangibles, and research and development.
- Hedge Accounting Phase 2—This research project will seek stakeholder feedback that could bring further alignment of hedge accounting with risk management activities beyond the targeted improvements made to the hedge accounting model in Accounting Standards Update No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, and consider changes to the definition of a derivative.
- Accounting for Financial Instruments with Environmental, Social, and Governance (ESG)-Linked Features and Regulatory Credits—This research project will explore accounting for and disclosure of financial instruments with ESG-linked features and regulatory credits.
- Accounting for Government Grants, Invitation to Comment—This research project will solicit feedback on whether the requirements in IAS 20, Accounting for Government Grants and Disclosure of Government Assistance, should be incorporated into GAAP.
- Agenda Consultation—This research project will solicit feedback about the financial reporting issues that the Board should consider adding to its agenda and the priority of those issues.