New Year, New Taxono[Me]

New Year, New Taxono[Me]

On December 20, 2019, the Financial Accounting Standards Board (FASB) and the Financial Accounting Foundation (FAF) announced the release of the 2020 GAAP Financial Reporting Taxonomy, as well as the 2020 SEC Reporting Taxonomy (SRT), and the 2020 XBRL US DQC Rules Taxonomy (DQCRT).  

2020 GAAP Financial Reporting Taxonomy 

The 2020 GAAP Financial Reporting Taxonomy updates and improves accounting standards from amendments made to the Accounting Standards Codification (ASC) and the Accounting Standards Update (ASU). The release notes describe FASB’s efforts to improve the effectiveness of the Taxonomy while reducing inconsistencies. New elements that are introduced in the 2020 Taxonomy derive from the remodeling of retirement benefits, variable interest entities and equity method investments, and clarification of maturity schedule element labels.

To reduce redundancies and improve the quality of the data, the update includes the third phase of the Taxonomy topical project regarding retirement benefits on multiemployer plans and on variable interest entities (VIEs). This project created a total of 66 new elements and modifications to document labels, references, and element deprecations to improve reporting retirement benefit data. The project also addresses issues with modeling and tagging data in the variable interest entity discourses. Dimensions are added to allow existing line elements to report consolidated values. Additional information regarding these changes is discussed in detail in the 2020 SRT.

In addition to the new elements and improvements mentioned above, the technical modifications made to the ASU in 2019 are included in this Taxonomy. Below is a list of the nine ASU improvements that are incorporated with the new 2020 Taxonomy:

 

Accounting Standard Update

ASU #

Improvements in 2019

Leases (Topic 842): Codification Improvements

2019-01

Included

Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials (a consensus of the FASB Emerging Issues Task Force)

2019-02

Included

Not-for-Profit Entities (Topic 958): Updating the Definition of Collections

2019-03

Included

Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments

2019-04

Included

Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief

2019-05

Included

Codification Updates to SEC SectionsAmendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates

2019-07

Included

Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification ImprovementsShare-Based Consideration Payable to a Customer

2019-08

Included

Codification Improvements to Topic 326, Financial Instruments—Credit Losses

2019-11

Included

Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

2019-12

Included

 

A complete list of ASU issued improvements in 2019 that will affect the 2020 Taxonomy can be found in the release notes.

 

2020 SEC Reporting Taxonomy

The 2020 SEC Reporting Taxonomy release describes enhancements to the existing 2019 SRT. Elements that already exist in the 2019 SRT remain unchanged to keep filings comparable; however, there are new elements and improvements that have been added that filers should be aware of.

New Elements

Prefix

Standard Label

Element Name

srt

Cumulative Effect, Period of Adoption [Axis]

CumulativeEffectPeriodOfAdoptionAxis

srt

Cumulative Effect, Period of Adoption [Domain]

CumulativeEffectPeriodOfAdoptionDomain

srt

Cumulative Effect, Period of Adoption, Adjusted Balance [Member]

CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember

srt

Cumulative Effect, Period of Adoption, Adjustment [Member]

CumulativeEffectPeriodOfAdoptionAdjustmentMember

srt

Revision of Prior Period, Accounting Standards Update, Adjustment [Member]

RevisionOfPriorPeriodAccountingStandardsUpdateAdjustmentMember

srt

Revision of Prior Period, Change in Accounting Principle, Adjustment [Member]

RevisionOfPriorPeriodChangeInAccountingPrincipleAdjustmentMember

srt

Revision of Prior Period, Error Correction, Adjustment [Member]

RevisionOfPriorPeriodErrorCorrectionAdjustmentMember

srt

Revision of Prior Period, Reclassification, Adjustment [Member]

RevisionOfPriorPeriodReclassificationAdjustmentMember

 

In addition to the eight new elements that are introduced, the 2020 SRT includes improvements to standard labels and documentation labels that are commonly used by GAAP filers. A complete list of improvements and modifications to the SRT from the prior release has been posted on the FASB website.

2020 XBRL US DQC Rules Taxonomy

In addition to the 2020 GAAP Taxonomy and the SEC Reporting Taxonomy, FASB released the 2020 XBRL US DQC Rules Taxonomy (DQCRT) with the intention of improving exposure and access to XBRL US DQC Rules. The DQCRT is a FASB taxonomy that incorporates derivative format DQCRs that are published by XBRL US. The release states that additional DQCRs may also be included in the future.

Closing

As FASB’s ongoing efforts to develop and improve the US GAAP Financial Reporting Taxonomy, this release builds upon the 2019 Taxonomy and helps make financial reporting clear and effective. More information on the specific improvements to the Taxonomy structure can be found on the Taxonomy (XBRL) section of the FASB website.

The U.S. Securities and Exchange Commission accepted the 2020 GAAP Financial Reporting Taxonomy and 2020 SEC Reporting Taxonomy on March 9, 2020, and recommends companies to take advantage of the most up-to-date tags related to accounting standards. Additionally, for filings with a reporting period ending after March 9, 2020, it is recommended that filers transition to the 2020 taxonomy.

It is important that your XBRL provider is ahead of the curve. Our Transform SEC filing software suite integrates with the latest taxonomy and DQC rules to ensure your XBRL tagging is timely and accurate. Contact us to see how we can assist your company with your SEC filing requirements.