The FASB has issued an Exposure Draft to improve the guidance in Topic 270, Interim Reporting, which is intended to improve navigating required interim disclosures and clarifying when that guidance is applicable. As this guidance has developed over time, users have noted that the guidance is challenging to navigate. The fundamental nature of interim reporting is not intended to be changed or be reduced in terms of disclosure requirements. Instead, the intention is to enhance consistency in interim reporting for all entities.

The Exposure Draft would be applicable to all entities that provide interim financial statements and notes in accordance with GAAP. The FASB has developed a list of interim disclosures required by GAAP to provide clarity about current requirements. Additionally, the Exposure Draft would provide additional guidance on what disclosures are required with interim reporting including disclosures of events and changes since the end of the last annual reporting period that have a material impact on the entity.

 
The FASB has invited individuals and organizations to comments on various questions related to the Exposure Draft, which include, but are not limited to, form and content of interim financial statements and related notes in accordance with GAAP, necessary changes in disclosures in Topic 270 and the list of disclosures compiled by the FASB in the Exposure Draft, and other matters for which the FASB would like stakeholder feedback.

The Exposure Draft would be applied prospectively to interim financial statements and related notes in accordance with GAAP after the established effective date, which is to be determined after consideration of stakeholder feedback.

The full text of the Exposure Draft can be found here. 

Published: 12/01/2024

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