FASB Discusses Projects on Interim Reporting, Agenda Consultation, and ESG-Linked Financial Instruments
June 1, 2022
At its May 25, 2022, meeting, the FASB discussed its projects on the following topics:
- Interim reporting: narrow-scope improvements — The Board discussed the feedback it received on its proposed Accounting Standards Update Disclosure Framework — Changes to Interim Disclosure Requirements and “affirmed the amendments to the objective of [ASC] 270 to provide guidance on accounting and disclosure issues specific to interim reporting and to set forth disclosure requirements for interim financial statements and notes in accordance with generally accepted accounting principles.”
- Agenda consultation — The Board discussed the feedback it received on its June 2021 invitation to comment Agenda Consultation (the “2021 ITC”) and decided not to add various projects on financial reporting issues to its technical agenda. In addition, FASB Chair Richard Jones decided to add to the Board’s research agenda a project on key financial performance indicators for business entities.
- Accounting for financial instruments with environmental, social, and governance (ESG)-linked features and regulatory credits — The Board discussed its preagenda research on this topic, including stakeholder feedback on regulatory credits (i.e., environmental credits) the Board received in response to the 2021 ITC. The Board decided to add to its technical agenda a project that addresses (1) “the recognition, measurement, presentation, and disclosure requirements for participants in compliance and voluntary programs that result in the creation of environmental credits” and (2) financial reporting requirements for “nongovernmental creators of environmental credits.”