Helping clients meet their business challenges begins with an in-depth understanding of the industries in which they work. That’s why KPMG LLP established its industry-driven structure. In fact, KPMG LLP was the first of the Big Four firms to organize itself along the same industry lines as clients.

How We Work

We bring together passionate problem-solvers, innovative technologies, and full-service capabilities to create opportunity with every insight.

Learn more

Careers & Culture

What is culture? Culture is how we do things around here. It is the combination of a predominant mindset, actions (both big and small) that we all commit to every day, and the underlying processes, programs and systems supporting how work gets done.

Learn more

FASB proposes income statement disaggregation disclosures

Defining Issues | August 2023

Public companies would disclose specific natural expense categories in certain income statement captions.

The proposed ASU addresses investor requests for more decision-useful information. Any relevant expense caption would be disaggregated in a tabular disclosure in the notes to the financial statements. If applicable, further disaggregation of inventory and manufacturing expense would be required. 


Proposed ASU

  • Annual and interim financial statements of public business entities

Relevant dates

  • July 31, 2023 – FASB proposed ASU
  • October 30, 2023 – Comments due

Key Impacts:

Proposed quantitative disclosures

Disaggregate every relevant expense caption into:

  • employee compensation
  • depreciation
  • intangible asset amortization
  • depreciation, depletion and amortization (DD&A)
  • inventory and manufacturing expense

Further disaggregate inventory and manufacturing expense, if applicable, into:

  • purchases of inventory
  • employee compensation
  • depreciation
  • intangible asset amortization
  • DD&A

State the total amount of selling expenses

Proposed qualitative disclosures

  • Describe the nature of amounts not separately disaggregated in relevant expense captions
  • Describe the nature of amounts not separately disaggregated in inventory and manufacturing expense and other adjustments and reconciling items
  • Provide the entity's definition of other manufacturing expenses
  • Provide the entity’s definition of selling expenses

Report contents

  • Source and applicability
  • Fast facts, impacts, and actions
  • Background
  • Proposed disclosures
  • Illustrative example

Download the document:

FASB proposal

Download PDF

KPMG comment letter

Download PDF

Explore more

Meet our team

Image of Valerie Boissou
Valerie Boissou
Partner, Dept. of Professional Practice, KPMG US

Accounting Research Online

Access our accounting research website for additional resources for your financial reporting needs.

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's Privacy Statement.

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.