FASB Staff to Resume Performance Reporting Research

April 13, 2018

As work on the Financial Accounting Standards Board’s (“FASB”) performance reporting project continues, FASB members have asked their research staff to review reporting practices related to the costs linked to generating revenue. At the FASB’s March 28 meeting, board members shared their interest in gaining a better understanding of which information in income statements can and cannot be disaggregated. Members also want the FASB’s research staff to look into the issue without limiting the options for the project’s completion.

The research staff is expected to meet with financial executives regarding their reporting practices and ask investors and securities analysts which information they prefer to see in financial statements. FASB Chairman Russell Golden asked the staff to expand its outreach to include companies from various industries and of different sizes. Additionally, he also wants to find out how forthcoming financial executives will be regarding the information they can collect and publicly disclose.

Golden expects staff outreach to produce various views about how companies manage their business and how much information they want to divulge. From there, he noted, the FASB will be able to decide which direction it will take in providing a better understanding of the information disclosed in income statements.