FASB Proposes a Wide Range of Disclosure Modifications
On May 6, the Financial Accounting Standards Board (FASB) issued a Proposed Accounting Standards Update (the Update) that proposes over a dozen disclosure modifications. These proposed Codification amendments are in response to the Securities and Exchange Commission’s (SEC’s) Disclosure Update and Simplification Initiative. In SEC Release No. 33-10532, Disclosure Update and Simplification, issued Aug. 17, 2018, the SEC forwarded certain of its disclosure requirements to the FASB for potential incorporation into the Codification. The amendments in the Update are the result of the Board’s consideration of the forwarded disclosures.
The FASB is proposing nineteen amendments to the Codification. The amendments cover a wide range of topics. Among the nineteen proposed amendments, Nareit has identified the following items that may be of interest to Nareit members:
- 250-10 Accounting Changes and Error Corrections – Overall – The proposed amendment would clarify that an entity should disclose in interim financial statements any material retrospective prior-period adjustment and the effect of the adjustment on retained earnings.
- 470-10 Debt – Overall – Add disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted–average interest rate on outstanding short-term borrowings.
- 830-10 Foreign Currency Matters – Overall – Amend translation guidance to clarify the applicability to a reporting entity that reports its financial statements in a currency other than its functional currency.
- 974-10 Real Estate – Real Estate Investment Trusts – Overall – Add disclosure of the tax status of distributions per unit (for example, ordinary income, capital gain, and return of capital) for a real estate investment trust.
If you are interested in participating in a Nareit task force that will evaluate the proposed amendments and assess whether Nareit should comment, please RSVP here no later than Friday, May 24. Comment letters are due to the FASB no later than June 28.