IASB Proposes to Update IFRS Taxonomy; FASB Issues Taxonomies for 2022
The International Accounting Standards Board (IASB) is proposing changes to the IFRS Taxonomy 2021 to reflect changes made from amendment to the transition requirements in IFRS 17 on insurance contracts, which was issued in December 2021. The amendment to IFRS 17 stipulates that if an entity applies classification overlay, the entity shall disclose qualitative information that enables users of financial statements to understand the extent to which the classification overlay has been applied as well as whether, and to what extent, the impairment requirements in Section 5.5 of IFRS 9 have been applied. IASB proposes to add one text block element to the IFRS Taxonomy to reflect this new disclosure requirement. The deadline for submitting comments is January 17, 2022. Additionally, the U.S. Financial Accounting Standards Board (FASB) announced the availability of the 2022 GAAP Financial Reporting Taxonomy and the 2022 SEC Reporting Taxonomy.
As communicated by FASB, the 2022 GAAP Financial Reporting Taxonomy contains updates for accounting standards and other recommended improvements. The 2022 SEC Reporting Taxonomy contains improvements for removing references for superseded guidance, adding references to improve selection of the appropriate element for the disclosure requirement, and adding new abstract elements to provide a complete organizational structure. Both the taxonomies are expected to be accepted as final by SEC in early 2022. FASB is also making available the 2022 Data Quality Committee (DQC) Rules Taxonomy. The DQC Rules Taxonomy is uniquely structured from the typical design of XBRL taxonomies because it is narrowly focused on conveying the XBRL US DQC validation rules, predominantly for regulator use. It is not intended to be used in SEC filers’ extension taxonomies, the way that the GAAP Financial Reporting Taxonomy or the SEC’s Document and Entity Information Taxonomy is used. The DQC Rules Taxonomy contains a subset of the DQC rules. The FASB Taxonomy staff evaluated the validation rules for inclusion in the DQC Rules Taxonomy that have been available for use for more than a year, with consideration for how the DQC addressed any feedback received on a validation rule.
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Comment Due Date: January 17, 2022 (IFRS Taxonomy 2021)
Keywords: International, Americas, US, Banking, Insurance, IFRS Taxonomy, IFRS 17, IFRS 9, Insurance Contracts, Financial Instruments, Disclosures, GAAP Taxonomy, DQCRT, SEC Reporting Taxonomy, Accounting, IASB, FASB
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