FASB Proposes Improvements to 2021 GAAP Financial Reporting Taxonomy
FASB proposed technical and other conforming improvements for the 2021 US GAAP Financial Reporting Taxonomy, with the comment period on the proposals ending on November 02, 2020. The accompanying release notes describe the proposed improvements, which include new elements for asset acquisitions, credit losses, debt securities, leases, reorganization, variable interest entities, and banking regulation disclosures. Improvements also involve modifications of the standard and documentation labels, along with the deprecations for guidance that has been superseded and that assist in improving consistency and structure for the topical projects related to accounting changes and reorganizations.
The release notes highlight that there are proposed improvements to accommodate various presentations of credit quality indicators and past due information disclosures for Topic 326 on credit losses. These improvements include broadening “Financial Asset, Period Past Due [Axis]” to “Financial Asset, Aging [Axis]” with a “Financial Asset, Not Past Due [Member]” and deprecating past due and not past due line items for financial assets such as “Financing Receivable, Past Due” and “Financing Receivable, Not Past Due.” Also, new elements were added to accommodate reporting of financial assets excluding accrued interest and for debt securities after allowance for credit losses.
The modeling for reporting lessor disclosures for underlying assets under operating leases was improved by adding new line items. Data type and standard labels were changed for elements that were previously referred to as “[Extensible List]” because of finalization of Extensible Enumerations 2.0 specification by the XBRL International Standards Board. These improvements do not change how the elements are intended to be used. As a result of the EDGAR Release 20.2, the 2018 Taxonomy no longer is supported and the 2018 deprecated elements will not appear in the 2021 Taxonomy as deprecated items or in deprecated relationships. Five hundred seventy-four (574) elements deprecated with the 2018 Taxonomy will be removed because they are no longer available for use.
Related Links
Comment Due Date: November 02, 2020
Keywords: Europe, UK, Insurance, Solvency II, Effective Value Test, Minimum Deferment Rate, Volatility Parameter, Equity Release Mortgage, Matching Adjustment, PRA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Laurent Birade
Advises U.S. and Canadian financial institutions on risk and finance integration, CCAR/DFAST stress testing, IFRS9 and CECL credit loss reserving, and credit risk practices.
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Previous Article
ESRB Publishes Risk Dashboard in October 2020Related Articles
ESAs Publish Reporting Templates for Financial Conglomerates
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA Publishes Report on Asset Encumbrance of Banks in EU
EBA published the annual report on asset encumbrance of banks in EU.
US Agencies Publish Updates for Call Reports, FFIEC 101, and FR Y-9C
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA Proposes Guidelines for Establishing Intermediate Parent Entities
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC Adopts Financial Reporting Changes Arising from Benchmark Reforms
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HMT Updates List of Post-Brexit Equivalence Decisions in UK
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA Issues Erratum for Technical Package on Reporting Framework 3.0
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA Publishes FAQ on Measurement of Credit Risk Weighted Assets
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
ECB Letter Sets Out Strategies to Address Issue of Nonperforming Loans
ECB published a letter from Andrea Enria, the Chair of the Supervisory Board of ECB, answering questions raised by the President of the Bundestag (the German federal parliament) on how ECB assesses the financial stability of the euro area in the context of the significant level of nonperforming loans.
