Every year, the Financial Accounting Foundation (FAF) and the Financial Accounting Standards Board (FASB), who are responsible for any ongoing development and maintenance of the US Generally Accepted Accounting Principles (GAAP), come up with a new version of the taxonomy. On October 3, 2022, they issued the ‘Proposed Technical and Other Conforming Improvements’ for the public to review and provide comments. The 2023 GAAP Financial Reporting Taxonomy is made in addition to Accounting Standards Updates issued in 2022.
Proposed Technical and Other Conforming Improvements
These technical and other conforming changes include:
- New Elements for Reporting:
- Related parties from the remodeling of the topic
- Useful lives and depreciation methods
- Deferred revenue related to long-duration insurance contracts
- Disclosures by business development companies
- Deprecations for guidance that has been superseded and to improve consistency and structure from topical projects and other reviews including reporting information for related parties, for treasury shares, and by business development companies
- Period type changes on durationItemType elements to improve the usability of the information by aligning with the related monetary elements’ period type
- Modified standard and documentation labels to clarify elements and improve appropriate usage
- Modified references to assist with element selection excluding references modified from review under the reference project expected to be exposed separately.
Count of Taxonomy Changes and Updates:
| Particulars | Count |
| New Elements Added | 140 |
| Deprecated Elements | 261 |
| Period-Type Changes | 13 |
| Documentation and Standard Label Changes | 132 |
| Reference Modification (Addition or Deletion) | 360 |
| Deleted Elements | 324 |
The Financial Accounting Standards Board (FASB) provided the taxonomy updates; the key topic updates are provided below:
- ASU Topic 326 – Financial Instruments – Credit Losses:
- ASU Topic 815 – Derivatives and Hedging
Below is the list of ASC topics and a new set of elements related to these topics introduced in the taxonomy. The appendix can be downloaded from the link:
| ASC Topic | Topic Name | Summary of Taxonomy Updates |
| ASC 210 | Balance Sheet | Accounts and Financing Receivable (Extensible Enumeration-2)
Accounts Payable (Extensible Enumeration-2) Accounts Receivable (Extensible Enumeration-2) Financing Receivable (Extensible Enumeration-2) Notes Payable (Extensible Enumeration-2) Other Liability (Extensible Enumeration-2) Other Receivables (Extensible Enumeration-3) |
| ASC 220 | Income Statement | Cost of Revenues (Extensible Enumeration-1)
Revenues (Extensible Enumeration-1) |
| ASC 230 | Statement of Cash Flows | Cash and Cash Equivalents – Continuing and Discontinued Operations (Monetary-4) |
| ASC 235 | Notes to Financial Accounts | Accounts and Financing Receivable (Extensible Enumeration-3)
Accounts Payable (Extensible Enumeration-3) Accounts Receivable (Extensible Enumeration-3) Cost of Revenues (Extensible Enumeration-1) Financing Receivable (Extensible Enumeration-3) Interest Expense (Extensible Enumeration-1) Interest Income (Extensible Enumeration-1) Nonrelated Party (Dimension-1) Notes Payable (Extensible Enumeration-3) Operating Costs and Expenses (Extensible Enumeration-1) Other Liability (Extensible Enumeration-3) Other Operating Income (Extensible Enumeration-1) Other Receivable (Extensible Enumeration-3) Related Party (Axis-1, Domain-1, Dimension-1) Revenue (Extensible Enumeration-1) Selling, General and Administrative (Extensible Enumeration-1) |
| ASC 280 | Segment Reporting | Segment Expenditure (Monetary-1) |
| ASC 320 | Investments-Debt and Equity Securities | Equity Ownership (Percent-1) |
| ASC 360 | Property, Plant, and Equipment | Declining Balance (Dimension-3)
Depreciation Method (Domain-1, Dimension-3, Extensible Enumeration-1) Useful Life (Domain-1, Dimension-3, Extensible Enumeration-1) |
| ASC 410 | Asset Retirement and Environmental Obligations | Environmental Remediation, Expense (Monetary-1), (Extensible Enumeration-2) |
| ASC 470 | Debt | Accounts and Financing Receivable (Extensible Enumeration-3)
Accounts Payable (Extensible Enumeration-3) Accounts Receivable (Extensible Enumeration-3) Cost of Revenues (Extensible Enumeration-1) Financing Receivable (Extensible Enumeration-3) Interest Expense (Extensible Enumeration-1) Interest Income (Extensible Enumeration-1) Notes Payable (Extensible Enumeration-3) Operating Costs and Expenses (Extensible Enumeration-1) Other Liability (Extensible Enumeration-3) Other Operating Income (Extensible Enumeration-1) Other Receivable (Extensible Enumeration-3) Related Party (Axis-1, Domain-1, Dimension-1) Revenue (Extensible Enumeration-1) Selling, General and Administrative (Extensible Enumeration-1) |
| ASC 740 | Income Taxes | Tax Year (Dimesion-1) |
| ASC 810 | Consolidation | Variable Interest Entity (Boolean-1) |
| ASC 830 | Foreign Currency Matters | Cash and Cash Equivalents – Continuing and Discontinued Operations (Monetary-4) |
| ASC 842 | Lease Accounting | Sale Leaseback (Duration-1) |
| ASC 850 | Related Party Disclosures | Accounts and Financing Receivable (Extensible Enumeration-6)
Accounts Payable (Extensible Enumeration-6) Accounts Receivable (Extensible Enumeration-6) Cost of Revenues (Extensible Enumeration-2) Financing Receivable (Extensible Enumeration-6) Interest Expense (Extensible Enumeration-2) Interest Income (Extensible Enumeration-2) Non-Related Party (Dimension-1) Notes Payable (Extensible Enumeration-6) Operating Costs and Expenses (Extensible Enumeration-2) Other Liability (Extensible Enumeration-9) Other Operating Income (Extensible Enumeration-2) Other Receivable (Extensible Enumeration-9) Related Party (Axis-1, Domain-1, Dimension-1) Revenue (Extensible Enumeration-2) Selling, General and Administrative (Extensible Enumeration-2) |
| ASC 942 | Financial Services – Depository and Lending | Accounts and Financing Receivable (Extensible Enumeration-1)
Accounts Payable (Extensible Enumeration-1) Accounts Receivable (Extensible Enumeration-1) Financing Receivable (Extensible Enumeration-1) Notes Payable (Extensible Enumeration-1) Other Liability (Extensible Enumeration-1) Other Receivable (Extensible Enumeration-1) |
| ASC 944 | Financial Services – Insurance | Accounts and Financing Receivable (Extensible Enumeration-1)
Accounts Payable (Extensible Enumeration-1) Accounts Receivable (Extensible Enumeration-1) Deferred Income (Line Items-1, Table-1, Monetary-3, Extensible Enumeration-4) Financing Receivable (Extensible Enumeration-1) Notes Payable (Extensible Enumeration-1) Other Liability (Extensible Enumeration-1) Other Receivable (Extensible Enumeration-1) Short Duration Insurance (Dimension-1) |
| ASC 250 | Accounting Changes and Error Corrections | Change in Reporting Entity (Monetary-1) |
| ASC 815 | Derivatives and Hedging | Hedged – Asset and Liability (Enumeration-2) |
| ASC 946 | Financial Services – Investment Companies | Change in Reporting Entity (Monetary-1)
Derivative Underlying (Extensible Enumeration-1) Tax Reclassification (Monetary-1) Investment Owned (Boolean-1) Realized and Unrealized Gain Loss (Monetary-2) Variation Margin – Payable and Receivable (Extensible Enumeration-2) |
| Others (not specified) | Deferred Income (Roll Forward-1, Extensible Enumeration-4)
Environmental Remediation (Abstract-1) Investment (Abstract-3, Line Items-1) |
|
Comments on the proposed technical and other conforming improvements can be submitted to xbrl@fasb.org / xbrled@fasb.org or by sending written comments to ‘Chief of Taxonomy Development’, FASB 801 Main Avenue, P.O. Box 5116, Norwalk, CT 06856-5116.
The new proposed taxonomy is expected to be approved by the SEC early next year.
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