FASB staff is seeking public comment about three proposed taxonomy implementation guides that model accounting changes, Chapter 11 reorganizations, and reinsurance-related disclosures, according to an April 25, 2022 SEC alert.
“The SEC staff encourages filers, investors, analysts, software service providers, and other interested parties to participate in this public review to continue to improve the process for creating and using XBRL-structured financial statements,” the alert says.
Companies should comment directly to FASB by May 11 to xbrlguide@fasb.org.
The taxonomy is a list of computer-readable tags in eXtensible Business Reporting Language (XBRL) that allow companies to label precisely the thousands of pieces of financial data that are included in typical long-form financial statements and related footnote disclosures.
Taxonomy implementation guides are not authoritative but communicate how the GAAP Financial Reporting Taxonomy and the SEC Reporting Taxonomy are designed. They also provide other information to help a taxonomy user to understand how elements and relationships are structured.
The first guide addresses Topic 250, Accounting Changes and Error Corrections, and topics amended by an ASU, according to a text of the proposal.
The guide includes two sections: an overview of the modeling for the reporting of the transition upon adoption of amendments from an ASU or other accounting changes; and 10 examples of modeling for the reporting of the transition upon adoption of amendments from an ASU or other accounting changes.
The second guide relates to the reporting of Chapter 11 reorganization under Topic 852, Reorganizations, with a focus on detailed Level 4 tagging only. Two sections are also included: an overview of the modeling for the reporting of Chapter 11 reorganization under Topic 852; and six examples of modeling for the reporting of Chapter 11 reorganization under Topic 852.
The examples are based on the assumption that the entity meets the criteria for reporting a Chapter 11 reorganization under GAAP and/or SEC authoritative literature, the text explains. In addition, the reported line items within the examples do not include all reporting requirements and represent only partial disclosures and statements for illustrative purposes.
The third guide is related to reinsurance-related disclosures of insurance companies, including retention-related items, effects of reinsurance, and the supplemental schedule of reinsurance under < Topic 944, Financial Services—Insurance. The guide also focuses on detail Level 4 tagging only. There are two sections included: an overview of the modeling for the reporting of reinsurance-related disclosures; and four examples of modeling for the reporting of reinsurance-related disclosures.
The U.S. GAAP Taxonomy is developed and maintained by the FASB under the helm of its trustee body the Financial Accounting Foundation as contracted by the SEC.
This article originally appeared in the April 26, 2022 edition of Accounting & Compliance Alert, available on Checkpoint.
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