A proposed ASU seeks to update disclosures in response to the SEC’s disclosure update and simplification initiative. Several of the FASB’s proposed changes would apply to private and not-for-profit entities in addition to public entities.
The FASB proposal would modify US GAAP to incorporate several disclosures and presentation requirements currently residing in SEC regulations. The proposal would add requirements for private and not-for-profit entities, including new disclosures about:
Other proposed disclosures would be required only for public entities, which already have similar requirements under SEC regulations.
The proposals are in response to the SEC’s August 2018 release, Disclosure Update and Simplification, in which the SEC referred certain of its disclosure requirements that overlap with, but provide incremental information to, US GAAP to the FASB for potential incorporation into the FASB’s Accounting Standards Codification.
The proposed amendments would apply prospectively.