Defining Issues | November 2021

 

Insight

FASB proposes amendments to interim disclosure requirements

Proposed ASU would clarify interim disclosure requirements for more consistent disclosure across entities.

Valerie Boissou

Valerie Boissou

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-1723

The proposed amendments are part of the FASB’s disclosure framework project to improve disclosure effectiveness. The proposals also address the removal by the SEC of language from Regulation S-X, Rule 10-01, Interim Financial Statements, which required disclosure on events that have occurred after the end of the most recent fiscal year that have a material effect on the registrant.

Applicability

  • All entities that prepare interim financial statements and notes in accordance with US GAAP

Relevant dates

  • November 1, 2021 – FASB issued proposed ASU
  • January 31, 2022 – Comments due 

Key impacts

The proposed amendments would do the following:

  • provide guidance on the forms interim reporting in accordance with US GAAP can take;
  • define the contents of condensed financial statements;
  • clarify how entities should apply materiality judgments and introduce to US GAAP a ‘catch-all’ disclosure principle to determine which disclosures to provide at interim periods;
  • reorganize and reference all interim reporting requirements into ASC 270.

Report contents

  • Fast facts, impacts, actions
  • Background
  • Proposed guidance
  • Effective dates and transition

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