FASB Staff Proposes GAAP Taxonomy Improvements Related to Derivatives Scope Refinements

The FASB has released proposed improvements to the U.S. GAAP Financial Reporting Taxonomy in connection with its proposed Accounting Standards Update (ASU) Derivatives Scope Refinements and Scope Clarification for a Share-Based Payment From a Customer in a Revenue Contract. The proposed improvements were released in response to feedback from stakeholders regarding (1) how derivative accounting would be applied to contracts containing features that are based on the activities or operations of one of the contract’s parties and (2) differences in the ways entities account for customers’ share-based payments that constitute consideration for transfers of goods or services.

Comments on the proposed taxonomy improvements are due by October 21, 2024.