Article
GAAP taxonomy refresh: FASB proposes upgrades for interim reporting, government grants
Nov 27, 2024 · Authored by
As part of ongoing efforts, the FASB has proposed improvements to the Generally Accepted Accounting Principles (GAAP) Taxonomy, aimed at accommodating potential updates to accounting standards governing interim reporting and government grants for businesses.
The GAAP Taxonomy plays a crucial role in ensuring consistent and accurate financial reporting, providing investors and analysts with reliable information to make informed decisions.
The proposed changes to the taxonomy will facilitate the tagging of information related to the FASB's recently released exposure drafts. Specifically, Proposed Accounting Standards Update (ASU) No. 2024-ED600 aims to improve the navigability of required interim disclosures and clarify their applicability, while Proposed ASU No. 2024-ED700 addresses government grants, setting guidance for grants related to assets and income, and introducing a consistent initial recognition threshold for all government grants.
The FASB's taxonomy team is seeking comments on the proposed GAAP Taxonomy Improvements, with responses due by March 31, 2025, according to a board alert. Interested parties can submit comments to xbrled@fasb.org.
These proposed updates are part of the FASB's standard process to maintain and improve the GAAP Taxonomy, which is used by companies to report financial data to the SEC and other regulatory bodies.
The FASB emphasized that the updates are designed to promote transparency and consistency in financial reporting, reducing the complexity and opacity of financial statements. The accounting standards-setter also noted that the taxonomy can be used royalty-free by companies reporting under U.S. GAAP.
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