FASB has issued an Exposure Draft for Disclosure Improvements on Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. The proposed amendments are intended to clarify or improve disclosure and presentation requirements of a variety of Codification Topics.
Additionally, the updates correct technical errors and better align the requirements in the Codification with the SEC’s regulations, thus eliminating redundancies and make implementation easier.
Comments are due June 28, 2019.
Issued on May 6, the update represents a coordination between FASB and the SEC, as FASB modernizes and aligns with SEC guidance. Its 42 pages are worth the time to review, and because it applies to “all entities” there are many items of interest. For those of you involved in the niche concerns of private company reporting, here is your chance to review that unnecessary burdens are not imposed on these private entities.
Impacted by the proposal are 19 Accounting Standards Codification topics in the name of disclosure simplification.
- There are proposals to conform amendments
- Removes an impracticability exception for revenue recognition and segment reporting
- Adds disclosures
- Makes updates to the Mastery Glossary
Two of the 10 “Questions for Respondents” stand out because it is encouraging that auditability is being addressed in FSAB requirements:
- “For entities other than public business entities, are the proposed disclosure requirements operable and auditable? If not, which aspects pose operability or auditability concerns, and why?”
- “For entities other than public business entities, would any of the proposed disclosure requirements impose significant incremental costs? If so, please describe the nature and extent of the additional costs.”
The FASB proposals stem from work the SEC performed when it published Release No. 33-10532, “Disclosure Update and Simplification,” on Aug. 17, 2018.
You can read the FASB Exposure Draft here.
Interested parties may submit comments in one of three ways:
- Use the electronic feedback form available on the FASB website at Exposure Documents Open for Comment
- Email comments to email@example.com, File Reference No. 2019-600
- Send a letter to: Technical Director, File Reference No. 2019-600, FASB, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116
What questions do you have? Send your questions to firstname.lastname@example.org.
SCACPA is excited to partner with Galasso Learning Solutions and the Genuine Learning Blog for real-time A&A updates and answers for SCACPA members. With over 15 years of experience in the accounting profession, Melisa Galasso designs and facilitates courses in advanced technical accounting and auditing topics, including not-for-profit and governmental accounting. She closely monitors regulatory bodies for changes in auditing and accounting guidance and serves as a subject matter expert in implementing the updated guidance.
Look for Melisa to be a speaker on audit topics at SCACPA’s 2019 Spring Splash and Fall Fest as well as many seminars and rebroadcasts.