At its August 19, 2020 Board meeting, FASB Board discussed what changes should be made to the disclosure requirements for interim reporting. The Board decided to:
- Add a principle to Topic 270, Interim Reporting, that requires disclosures for significant events or transactions that have material effects on an entity. This addition is related to changes to U.S. Securities and Exchange Commission (SEC) Regulation S-X, Rule No. 10-01, Interim Financial Statements. The principle would result in disclosures that are transaction or event specific.
- Clarify that the disclosure requirements in Topic 270 are subject to a materiality assessment that includes considering the financial statements of the previous annual period.
- Add guidance to Topic 270 stating that the Topic contains a complete listing of interim disclosure requirements.
- Add links to Topic 270 for interim disclosure requirements that are currently included in other Topics.
- Revise phrasing such as for all periods presented to clarify that such phrasing requires comparative disclosure consistent with periods on the face of the financial statements and does not require interim disclosure.