FASB proposes disclosure changes
Defining Issues | May 2019
KPMG reports on the proposed ASU to update disclosures in response to the SEC’s disclosure initiative.
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.
Applicability
Proposed ASU
- All entities
Relevant dates
- May 6, 2019 – FASB issued proposed ASU
- June 28, 2019 – Comments due on proposed ASU
Key impacts
- Impact of derivative instruments in the statement of cash flows
- Newly consolidated or deconsolidated entities
- Assets mortgaged, pledged or subject to lien
- Weighted-average interest rate on short-term borrowings and unused lines of credit
- Change in reporting entity and combinations under common control in interim periods, if interim financial statements are provided
- Repurchase and reverse repurchase agreements
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.
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