NEWS RELEASE 05/15/13
FASB SEEKS INPUT ON REVISING U.S. GAAP FINANCIAL REPORTING TAXONOMY
CALCULATION HIERARCHY
Norwalk, CT, May 15, 2013—The
Financial Accounting Standards Board (FASB) today issued an Invitation to
Comment on proposed structural changes to the U.S. GAAP Taxonomy. FASB
U.S. GAAP Financial Reporting Taxonomy (UGT): A Proposal to Revise the UGT
Calculation Hierarchy sets forth a new calculation hierarchy
intended to improve the Taxonomy´s usefulness to preparers and users of
financial statements issued by U.S. publicly traded companies.
The Taxonomy
contains calculation hierarchies that demonstrate the mathematical relationship
between various elements of the Taxonomy. It indicates which elements are totals
and which elements are added together to compose a total. Currently, the
Taxonomy provides a calculation hierarchy―or summation―for every statement or
disclosure presentation with summation relationships, regardless of any overlap.
As proposed, the revised hierarchy would eliminate inconsistencies
created by these multiple calculation hierarchies, making it more functional for
users and easier to navigate for preparers. For example, the 2013 Taxonomy
release includes 19 summations for revenues, several of which are inconsistent.
The revised hierarchy would reduce the number of summations to three.
The
Taxonomy is a list of computer-readable financial reporting labels coded in a
special computer language―eXtensible Business Reporting Language, or XBRL―that
enables companies to tag thousands of pieces of financial data (elements) that
are included in typical long-form financial statements and related footnote
disclosures. The tags allow computers to automatically search for, assemble, and
process data so it can be readily accessed and analyzed by investors, analysts,
journalists, and regulators.
Stakeholders are encouraged to review and
provide input on the Invitation
to Comment by July 14, 2013. The Invitation to Comment is available at http://www.fasb.org/. Depending on the feedback
received, the FASB anticipates a final revised version to be released as early
as the 2014 U.S. GAAP Taxonomy Release.
About the Financial
Accounting Foundation
The FAF is responsible for the oversight,
administration, and finances of both the Financial Accounting Standards Board
and its counterpart for state and local government, the Governmental Accounting
Standards Board. The FAF also is responsible for selecting the members of both
Boards and their respective Advisory Councils.
About the
Financial Accounting Standards Board
Since 1973, the Financial
Accounting Standards Board has been the designated organization in the private
sector for establishing standards of financial accounting and reporting. Those
standards govern the preparation of financial reports and are officially
recognized as authoritative by the Securities and Exchange Commission and the
American Institute of Certified Public Accountants. Such standards are essential
to the efficient functioning of the economy because investors, creditors,
auditors, and others rely on credible, transparent, and comparable financial
information. For more information about the FASB, visit our website at http://www.fasb.org/.