MHM Messenger: FASB Releases 2015 Proposed GAAP Taxonomy
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our roots run deep TM MAYER HOFFMAN MCCANN P.C. – AN INDEPENDENT CPA FIRM A publication of the Professional Standards Group MHMMessenger © 2014 MAYER HOFFMAN MCCANN P.C. 877-887-1090 • www.mhmcpa.com • All rights reserved. TM benchmark a company’s performance compared to its peers and other entities that file with the SEC. Those using these tools will also need to be familiar with the taxonomy changes in order to properly update for changes that occur. What Changed? The annual updates are made with the intent of minimizing changes to avoid adversely impacting year- to-year comparability. Annual taxonomy changes such as new elements, deprecated elements, and definition changes have decreased from in excess of 6,000 in 2011 to approximately 500 in 2015. Nonetheless, certain changes are necessary to reflect updates to accounting and industry guidance. All FASB Accounting Standards Updates finalized during 2014 are reviewed to determine whether a change to the taxonomy is required. For example, FASB Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) , is not effective for several years; thus, any accounting or disclosure changes with respect to Topic 606 are not reflected in the 2015 updates. In the area of industry updates, focus was specifically placed on the Insurance and Financial Services industries to reduce redundancies and promote consistency and flexibility. On August 29, 2014, the Financial Accounting Standards Board (FASB) released the proposed 2015 GAAP Financial Reporting Taxonomy for public review and comment. What is the Taxonomy? The taxonomy consists of computer-readable reporting labels coded in eXtensible Business Reporting Language (XBRL) that allow companies to tag financial data included in financial statements and footnote disclosures. The purpose of the taxonomy is to provide an efficient means for investors, analysts, regulators, and other financial statement users to search for and analyze data. Further, the intent is to increase standardization amongst companies within the same industry for improved comparability and benchmarking. Public companies that file with the U.S. Securities and Exchange Committee (SEC) are required to use XBRL tags when submitting forms, including the 10-K and 10-Q. The SEC Staff strongly encourage the use of the most recent version of the taxonomy and prefer that companies use the standard tags without creating unique tags for their data. The interactive data collect by the SEC is available for use through various tools that make it easier for investors and others to September 2014 FASB Releases Proposed 2015 GAAP Taxonomy
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On August 29, 2014, the Financial Accounting Standards Board (FASB) released the proposed 2015 GAAP Financial Reporting Taxonomy for public review and comment. The taxonomy consists of computer-readable reporting labels coded in eXtensible Business Reporting Language (XBRL) that allow companies to tag financial data included in financial statements and footnote disclosures. The purpose of the taxonomy is to provide an efficient means for investors, analysts, regulators, and other financial statement users to search for and analyze data. Further, the intent is to increase standardization amongst companies within the same industry for improved comparability and benchmarking. This MHM Messenger answers some frequently asked questions regarding the proposed taxonomy.
Transcript of MHM Messenger: FASB Releases 2015 Proposed GAAP Taxonomy
our roots run deepTM
Mayer HoffMan Mccann P.c. – an IndePendenT cPa fIrM
a publication of the Professional Standards Group
MHMMessenger
© 2 0 1 4 M ay e r H o f f M a n M c c a n n P. c . 877-887-1090 • www.mhmcpa.com • All rights reserved.
TM
benchmark a company’s performance compared to its peers and other entities that file with the SEC. Those using these tools will also need to be familiar with the taxonomy changes in order to properly update for changes that occur.
What Changed?
The annual updates are made with the intent of minimizing changes to avoid adversely impacting year-to-year comparability. Annual taxonomy changes such as new elements, deprecated elements, and definition changes have decreased from in excess of 6,000 in 2011 to approximately 500 in 2015. Nonetheless, certain changes are necessary to reflect updates to accounting and industry guidance.
All FASB Accounting Standards Updates finalized during 2014 are reviewed to determine whether a change to the taxonomy is required. For example, FASB Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), is not effective for several years; thus, any accounting or disclosure changes with respect to Topic 606 are not reflected in the 2015 updates.
In the area of industry updates, focus was specifically placed on the Insurance and Financial Services industries to reduce redundancies and promote consistency and flexibility.
On August 29, 2014, the Financial Accounting Standards Board (faSB) released the proposed 2015 GAAP Financial Reporting Taxonomy for public review and comment.
What is the Taxonomy?
The taxonomy consists of computer-readable reporting labels coded in eXtensible Business Reporting Language (XBRL) that allow companies to tag financial data included in financial statements and footnote disclosures. The purpose of the taxonomy is to provide an efficient means for investors, analysts, regulators, and other financial statement users to search for and analyze data. Further, the intent is to increase standardization amongst companies within the same industry for improved comparability and benchmarking.
Public companies that file with the U.S. Securities and Exchange Committee (SEC) are required to use XBRL tags when submitting forms, including the 10-K and 10-Q. The SEC Staff strongly encourage the use of the most recent version of the taxonomy and prefer that companies use the standard tags without creating unique tags for their data. The interactive data collect by the SEC is available for use through various tools that make it easier for investors and others to
September 2014
FASB Releases Proposed 2015 GAAP Taxonomy
© 2 0 1 4 M ay e r H o f f M a n M c c a n n P. c . 877-887-1090 • www.mhmcpa.com • All rights reserved.
MHMMessenger
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The information in this MHM Messenger is a brief summary and may not include all the details relevant to your situation. Please contact your MHM auditor to further discuss the impact on your audit or audit report.
Who Updates the Taxonomy?
The Financial Accounting Foundation (FAF), parent organization to the FASB, in conjunction with the FASB, assembled a team of technical staff in 2010 dedicated to updating the taxonomy for changes in US GAAP, technical enhancements, and identifying best practices. The group assumes responsibility for annual, ongoing development and maintenance of the taxonomy. The Taxonomy, once adopted, is approved by the SEC for use by public companies in their filings with the SEC.
How can I Comment?
The deadline to submit written comments is October 31, 2014. The final 2015 GAAP Taxonomy is expected to be approved by the SEC in early 2015.
For More Information
If you have any specific questions, comments or concerns, please share them with Brad Hale of MHM’s Professional Standards Group or your MHM service professional. You can reach Brad at [email protected] or (727) 572-1400.
