FASB Proposes Improvements to 2023 GAAP Reporting Taxonomy
The Financial Accounting Standards Board (FASB) is seeking comments, until November 03, 2022, on the proposed technical and other conforming improvements for the 2023 GAAP Financial Reporting Taxonomy. In addition, FASB also proposed improvements for the 2023 GAAP Financial Reporting Taxonomy Reference Project, with the comment period ending on November 17, 2022.
The proposed technical and other conforming improvements forms part of the ongoing development and maintenance of the 2023 GAAP Financial Reporting Taxonomy, in addition to those from Accounting Standards Updates issued in 2022. These improvements may result in new elements, updates to documentation and standard labels to clarify elements, and modifications of references to assist with appropriate element selection. The improvements proposed in this release include:
- new elements for reporting on related parties from remodeling of the topic, useful lives and depreciation methods, deferred revenue related to long-duration insurance contracts, and disclosures by business development companies.
- deprecations for guidance that has been superseded and to improve consistency and structure from topical projects and other reviews including reporting information for related parties, for treasury shares, and by business development companies.
- period type changes on durationItemType elements to improve the usability of the information by aligning with the related monetary elements’ period type
- modified standard and documentation labels to clarify elements and improve appropriate usage
- modified references to assist with element selection excluding references modified from review under the reference project expected to be exposed separately.
As part of the ongoing project to improve references, the FASB accounting standards codification paragraphs in sections 45, 50 and S99 of certain topics were evaluated and references were added to elements that meet those presentation and disclosure requirements. These reference roles have been added to assist in understanding how the elements relate to the reporting requirements and to identify which elements explicitly meet the disclosure requirements and which elements are not specifically required. In this phase of the reference project, 730 elements were improved, which resulted in over 1200 additions and 400 deletions. Most of the references added were assigned either a disclosureRef, commonPraticeRef, or exampleRef role. The focus of this phase was on FASB Accounting Standards Codification Topic 320 Investments—Debt Securities, Topic 323 Investments—Equity Method and Joint Ventures, Topic 325 Investments—Other, Topic 460 Guarantees, Topic 730 Research and Development, Topic 946 Financial Services—Investment Companies, and part of Topic 944 Financial Services—Insurance.
Related Links
Keywords: Americas, US, Banking, Reporting, GAAP Taxonomy, Taxonomy, Insurance, Disclosures, FASB
Featured Experts
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
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.
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Previous Article
BIS Hub and Central Banks Conduct CBDC and DeFI PilotsRelated Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards