The Financial Accounting Standards Board published new rules Monday that will require public companies to break out more details related to certain expenses in tabular-style notes to financial statements. The long-anticipated rules could be a relatively big, costly lift for public companies, requiring a large amount of company resources to source the data required for the disclosures. However, while the rules carry a cost, "the demand from investors was so strong that we did need to recognize that and move forward with the standard,” FASB board member Frederick Cannon told CFO Dive. #accounting #gaap #publiccompanies #financialstatements https://lnkd.in/efbQENy9
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Recent years have seen a significant focus on updates to GAAP, urging companies to provide more detailed financial information in their statements. This shift has been a central theme for the U.S. accounting standards, shaping the way businesses communicate their financial data. 💬📈 At the end of June, the Financial Accounting Standards Board finalized new rules for public companies to break out "relevant" expense line items on the income statement. This means disclosing in the notes to the financial statements expenses like inventory purchases, employee compensation, depreciation, and intangible asset amortization. 📊 Amendments to GAAP standards will be issued by year-end and take effect for fiscal years starting after Dec. 15, 2026, and interim periods within fiscal years starting after Dec. 15, 2027. Be sure to follow along with us at Blue Onion for more updates on top stories like this! #FASB #AccountingStandards #FinanceNews #GAAP 🔗 https://hubs.ly/Q02FMTmJ0
FASB sets compliance clock for new expense disclosure rules
cfodive.com
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Always interesting to talk with Maura Webber Sadovi about accounting standards and topics. These new disclosures will provide a lot of information, but getting the data together may be more difficult than first glance - its going to take multiple departments working together. Might be an accounting disclosure, but the data will span the full company... Check out the story!
The Financial Accounting Standards Board by a 7-0 vote Wednesday agreed to effectively finalize new rules that will require public companies to break out “relevant” expense line items on the income statement by disclosing in the notes to the financial statements certain expenses such as purchases of inventory, employee compensation, depreciation and intangible asset amortization. The new requirements could be a heavier than anticipated lift for some companies who will have to gather and provide more data than they had in the past, according to Nicole Wright, PhD, CPA, an associate professor of accounting at James Madison University. “I know CFOs and how they think and they’ll say, ‘We’ve got this,’” Wright said in an interview. “But it’s going to take quite a bit of company resources across the board." #FASB #accounting #disclosures https://lnkd.in/gNf33F8P
FASB sets compliance clock for new expense disclosure rules
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The Financial Accounting Standards Board (FASB) has unanimously approved new rules requiring public companies to disclose specific expense line items on the income statement. These disclosures will include details such as inventory purchases, employee compensation, depreciation, and intangible asset amortization, detailed in the notes to the financial statements. This change signifies a substantial shift in financial reporting, aiming for greater transparency but also demanding more comprehensive data collection. #FASB #accounting #disclosures #Capitalmarkets https://lnkd.in/gNf33F8P
The Financial Accounting Standards Board by a 7-0 vote Wednesday agreed to effectively finalize new rules that will require public companies to break out “relevant” expense line items on the income statement by disclosing in the notes to the financial statements certain expenses such as purchases of inventory, employee compensation, depreciation and intangible asset amortization. The new requirements could be a heavier than anticipated lift for some companies who will have to gather and provide more data than they had in the past, according to Nicole Wright, PhD, CPA, an associate professor of accounting at James Madison University. “I know CFOs and how they think and they’ll say, ‘We’ve got this,’” Wright said in an interview. “But it’s going to take quite a bit of company resources across the board." #FASB #accounting #disclosures https://lnkd.in/gNf33F8P
FASB sets compliance clock for new expense disclosure rules
cfodive.com
