While the FASB\u2019s current technical agenda does not include landmark projects like revenue recognition and lease accounting, the Board is working on several projects that may significantly impact company reporting.\u00a0 Four projects to watch are:<\/p>\n
Segment Reporting Improvements<\/strong><\/p>\n On October 6, 2022, the Board issued a proposed Accounting Standard Update to ASC 280 \u2013 Segment Reporting<\/a>, that would expand segment disclosure requirements for public business entities.\u00a0 While the new standard would not change how operating segments are identified or aggregated, it would require:<\/p>\n In addition, the proposed ASU would clarify that multiple measures of segment profit or loss may be disclosed in certain circumstances and require all current and proposed disclosures for a public entity that has a single reportable segment<\/p>\n Enhanced Income Tax Disclosures<\/strong><\/p>\n The Board\u2019s tax project has evolved over time and is now focused on two key disclosure areas for public business entities:<\/p>\n The FASB\u2019s deliberations have focused on providing detailed information in each of these areas.\u00a0 The proposed disclosures for the effective rate reconciliation include addressing eight specific categories and related qualitative disclosures.\u00a0 For taxes paid the proposals focus on providing disaggregated information about taxes paid by jurisdiction.\u00a0 Developing appropriate disclosures, particularly for companies that operate in multiple tax jurisdictions could be challenging.\u00a0 In March of 2023 the FASB issued this Proposed ASU<\/a> and you can read more in this Tentative Board Decisions<\/a> document. \u00a0The Proposed ASU would also require certain new disclosures for private entities.<\/p>\n Disaggregated Expense Disclosure<\/strong><\/p>\n This project is now focused on \u201cimproving the decision usefulness of business entities\u2019 income statements through the disaggregation of any relevant expense line items.\u201d\u00a0 As you can read in this Tentative Board Decisions<\/a> document, it is likely a proposed standard would focus on disclosures about selling expenses, costs capitalized to inventory, employee compensation, depreciation, amortization and other details.\u00a0 In March 2023, the Board directed the FASB staff to draft a proposed ASU and decided on a 90-day comment period.\u00a0 This new standard would apply to public business entities.\u00a0 Companies may face challenges to accumulate this information and provide appropriate controls for these disclosures.<\/p>\n Accounting and Disclosure for Crypto Assets<\/strong><\/p>\n While this project may not affect as many companies as the three discussed above, for companies that hold crypto assets its impact could be significant.\u00a0 This project would require that crypto assets, as defined by the Board, would be accounted for at fair value with unrealized gains and losses recognized in income.\u00a0 This would be a major change from the existing indefinite lived intangible asset accounting model currently applied to these assets.\u00a0 You can read more in this March 23, 2023, Proposed Accounting Standards Update<\/a> and this Tentative Board Decisions<\/a> document.<\/p>\n While these projects are in process companies can certainly provide their thoughts and input to the Board.\u00a0 In addition, given how each of these projects would present challenges to gather information and build appropriate controls, putting them on the planning horizon now likely makes sense.<\/p>\n The board is working on several other projects, and you can find the Board\u2019s current Technical Agenda here<\/a>.<\/p>\n As always, your thoughts and comments are welcome!<\/p>\n","protected":false},"excerpt":{"rendered":" While the FASB\u2019s current technical agenda does not include landmark projects like revenue recognition and lease accounting, the Board is working on several projects that may significantly impact company reporting.\u00a0 Four projects to watch are: Segment Reporting Improvements On October 6, 2022, the Board issued a proposed Accounting Standard Update to ASC 280 \u2013 Segment … Continue reading Four Projects to Watch at the FASB<\/span> \n
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