IMA FRC comment letter response to proposed ASU on disaggregated income statement expenses

April 22, 2024

IMA’s FRC issued to a comment letter to the Financial Accounting Standards Board’s (FASB or Board) in response to a request for feedback from stakeholders on the following issues arising in its redeliberation of Proposed Accounting Standards Update, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220‐40) – Disaggregation of Income Statement Expenses (Proposed Update):

• Inventory and Manufacturing Expense as a required expense category and its further
  disaggregation into the required cost categories
• The effects of proportionate consolidation, joint ventures, and other cost reimbursement and cost‐sharing arrangements
• Applicability of the disclosure requirements to certain liability‐related expenses
• The use of estimates or other methods to determine the disaggregation of relevant expense captions and whether additional guidance is needed