The IMA Financial Reporting Committee (FRC or Committee) issued a comment letter in response to the FASB Invitation to Comment (ITC), Agenda Consultation.
The objective of the ITC is for the FASB to obtain feedback from stakeholders on its standard-setting and organizational priorities with a five-year horizon. The ITC classifies the items within its agenda-setting process into four general categories:
- Disaggregation of Financial Reporting Information
- Emerging Areas in Financial Reporting
- Reduction of Unnecessary Complexity in Current US GAAP
- Improvements to the FASB Standard-Setting Process
While addressing specific projects (and potential projects), the FRC’s comment letter highlights certain priorities, including the following:
- Simplification of certain disclosures, including defined benefit plans, the notional amount of derivatives, fair value measurement tables, and interim disclosures.
- Accounting for certain types of digital assets, specifically cryptocurrencies.
- Improvements to the FASB setting process, such as enhancing the understandability and navigability of the Codification, utilizing the interpretative capabilities of the Emerging Issues Task Force, and responding to the movement toward digital reporting.
Other areas addressed in the letter include intangible assets, revenue recognition, and ESG-related transactions.