The Financial Accounting Standards Board (the "FASB" or "Board") recently issued several project updates pertaining to financial statement disclosures.
On June 27, 2012, the FASB issued a proposed Accounting Standards Update, Financial Instruments (Topic 825) - Disclosures about Liquidity Risk and Interest Rate Risk. The proposal is intended to provide users of financial statements with additional decision-useful information about liquidity and interest rate risks. The comment period ends September 25, 2012, and the effective date will be determined after the FASB considers the feedback received on the proposal.
Based upon a decision reached in its June 20th meeting, the FASB on August 16th issued a proposed Accounting Standards Update, Comprehensive Income (Topic 220) - Presentation of Items Reclassified out of Accumulated Other Comprehensive Income ("AOCI"). The FASB believes that the proposed footnote disclosures will balance preparer concerns with financial statement user needs for more information regarding the impact of reclassification adjustments on net income. The comment period ends October 15, 2012.
On July 12, 2012, the FASB issued an Invitation to Comment on developing a framework that promotes consistent decisions by the Board with respect to disclosure requirements. The Invitation to Comment is a first step in the FASB's outreach efforts to solicit input on ways to improve financial statement disclosure effectiveness.
On July 9, 2012 the FASB removed from its technical agenda the proposed Accounting Standards Update related to Contingencies (Topic 450) - Disclosure of Certain Loss Contingencies.
This NewsAlert briefly describes these developments and their potential implications with respect to tax matters.