Small Business Advisory Committee Meeting Recap

May 2, 2019

The Small Business Advisory Committee (SBAC) met on May 2, 2019. At the meeting, the SBAC members provided input on the following topics:

• Technology in Financial Reporting: SBAC members shared their experiences with employing technology in financial reporting and the related internal controls. SBAC members discussed how technology allows companies to produce more data and improves data security. Some SBAC members also commented on the challenges and costs they have encountered, such as increased audit costs for the financial data generated from the IT system.
• Identifiable Intangible Assets and Subsequent Accounting for Goodwill: SBAC members discussed the purpose and usefulness of the accounting for goodwill impairment, which is one of the topics in the FASB’s forthcoming Invitation to Comment (ITC). SBAC members also commented on the current and potential improvements to the disclosures about goodwill impairments.
• Disclosure by Business Entities about Government Assistance: SBAC members discussed the operability and scope of the Board’s decisions, focusing on changes made during redeliberations.
• Financial Performance Reporting—Disaggregation of Performance Information: SBAC members provided feedback on the internal view approach of disaggregating performance information, such as the comparability among entities. SBAC members also discussed which factor (the specific individuals or information sets) should be considered first under the internal view approach and some potential alternatives to this approach.
• Disclosure Framework—Disclosure Review: Income Taxes: SBAC members provided their feedback on the usefulness and complexities of disclosing more disaggregated information about foreign taxes.

SBAC members also received updates on the Board´s recent decisions and discussed next steps on the following projects:

• Distinguishing Liabilities from Equity (including Convertible Debt)
• Simplifying the Balance Sheet Classification of Debt, and
• Disclosure Improvements in Response to the SEC's Release on Disclosure Update and Simplification.

For more information on the Small Business Advisory Committee, visit the FASB website.