FASB Provides Update on Disaggregation Project

January 13, 2023

FASB recently issued several tentative board decisions regarding its project on the disaggregation of income statement expenses.

At its Jan. 11 board meeting, FASB decided to require that entities disclose (1) costs incurred that are expensed as incurred and (2) costs incurred that are capitalized as inventory (and subject to subsequent measurement requirements in Topic 330, Inventory). Both groups of disaggregated disclosures would be required to include details regarding employee compensation; depreciation of property, plant and equipment; and amortization of intangible assets. Also, both groups would include inventory-related disclosures.

Additionally, FASB tentatively decided to require the disaggregation of residual expenses and costs incurred as well as selling expenses.

FASB officials recently said an exposure draft on the project could be published by July of this year. For more information on the disaggregation project, visit the FASB website.