New rules from FASB will require public companies to detail "relevant" expense line items on their income statement.
Companies must disclose certain expenses in the financial statement notes. These include inventory purchases, employee compensation, depreciation and intangible asset amortization.
A FASB spokesperson stated that the board will amend the standards underpinning GAAP by year-end. These will be effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years starting after December 15, 2027.
Even though companies typically have the data required under the new rules, one associate professor of accounting predicts compiling the information will take a considerable amount of time and company resources. Read more.