FASB proposed taxonomy improvements to the reference project for the 2021 US GAAP Financial Reporting Taxonomy, with the comment period on the proposals ending on November 09, 2020. The accompanying release notes describe the proposed taxonomy technical improvements to the 2020 taxonomy that were made to help users locate the appropriate element and understand the role type assigned to the reference. These improvements are designed to reduce inconsistencies in application and enhance the intended use of the elements. A complete list of proposed improvements have been provided in the Appendix to the release notes.
As part of the ongoing project to improve references, the FASB Accounting Standards Codification paragraphs in Sections 45, 50, and S99 of almost 20 topics were evaluated and references were added to elements that met those presentation and disclosure requirements. Reference roles assigned indicate the order of precedence and are meant to assist with element selection for the elements intended to meet reporting requirements. 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 but are commonly used to meet the requirements (commonPraticeRef role). In this phase of the reference project, more than 600 elements were improved, which resulted in more than 450 additions and almost 500 deletions. Most of the references that were added were assigned either a "disclosureRef" or "commonPraticeRef" role. References that were not reviewed in this phase of the Reference Project will continue to maintain the legacyRef role until they are evaluated.
Comment Due Date: November 09, 2020
Keywords: Americas, US, Banking, Reporting, US GAAP, Taxonomy, Reference Project, Taxonomy Improvements, FASB
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.
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