FASB provides update on disaggregation project

January 17, 2023

FASB issued a series of tentative board decisions related to its project on the disaggregation of income statement expenses.

The summary of tentative decisions includes an example of an income statement featuring the proposed new detail for disclosures.

FASB decided to require that entities disclose costs incurred that are expensed as incurred and costs incurred that are capitalized as inventory.

FASB would require both sets of disaggregated disclosures to include details related to employee compensation; depreciation of property, plant and equipment; and amortization of intangible assets. Both would include inventory-related disclosures.

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

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