A new FASB proposal would change the rules for interim disclosures in financial statements.
The proposal is part of FASB’s disclosure framework project for improving the effectiveness of disclosures in the notes to financial statements.
The proposal calls for reinstating a requirement the SEC removed in 2018 from Regulation S-X that requires disclosure at interim periods when a significant event or transaction occurs since the prior year end that has a material effect on the entity.
Other proposed changes include clarifying three forms of financial statements and notes in accordance with GAAP, and providing condensed financial statements subject to the disclosure requirements in Topic 270. See more proposed rule changes. FASB will accept comments through Jan. 31, 2022.