FASB is seeking comments on a proposed Accounting Standards Update (ASU) intended to provide investors with more decision-useful information regarding a public business entity's expenses.
The ASU proposes changes to Subtopic 220-40, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures, which would require public companies to provide detailed disclosure of specified categories underlying certain expense captions in interim and annual periods.
The ASU would provide investors with “more detailed information about the types of expenses, including employee compensation, depreciation, amortization, and costs incurred related to inventory and manufacturing activities in income statement expense captions such as cost of sales; selling, general and administrative; and research and development,” according to FASB.
FASB will accept comments on the proposed ASU through Monday, Oct. 30. Individuals who submit comments can also register for participation in a public roundtable on Wednesday, Dec. 13. Read more.