how new accounting standards get into the us gaap taxonomy
TRANSCRIPT
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XBRL filers are generally familiar with the annual US GAAP Taxonomy (UGT) release cycle. But
do you know what happens behind the scenes before changes appear in a new taxonomy?
UGT
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Let’s take the new accounting codification update on revenue recognition as an
example and walk through what the process looks like for developing the taxonomy.
UPDATE
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The process starts at the beginning of the year, when the XBRL team at the FASB reviews the Accounting Standard Updates (ASUs) proposed for the year and identifies topics that will impact the UGT. The team tracks the status of an ASU until it receives an exposure dra�.
Step 1: Kickoff
ASUsRevenue
Recognition
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Once the team receives the exposure dra�, it creates the proposed taxonomy modeling and develops the dra� implementation guide.
Step 2: Input collection
DRAFT
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Once the team receives the exposure dra�, it creates the proposed taxonomy modeling and develops the dra� implementation guide.
The team documents this process with memos that contain background information on the ASU, examples, and related modeling alternatives.
Step 2: Input collection
DRAFT
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Once the team receives the exposure dra�, it creates the proposed taxonomy modeling and develops the dra� implementation guide.
The team documents this process with memos that contain background information on the ASU, examples, and related modeling alternatives.
These will be discussed with constituents, including preparers, service providers, data consumers, and academics, during the public comment period.
Step 2: Input collection
DRAFT
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The proposed taxonomy modeling and implementation guide are available for public comment.
Step 3: Public commenting
TAXONOMY
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The proposed taxonomy modeling and implementation guide are available for public comment.
The team gathers input through targeted outreach to end users and other stakeholders and presents the materials to the Taxonomy Advisory Group (TAG) for additional feedback.
Step 3: Public commenting
@
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The proposed taxonomy modeling and implementation guide are available for public comment.
The team gathers input through targeted outreach to end users and other stakeholders and presents the materials to the Taxonomy Advisory Group (TAG) for additional feedback.
A�er this commenting process, changes are incorporated into the Development Taxonomy, which will go through the regular public comment period in the fall.
Step 3: Public commenting
TAXONOMY
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The entire Development Taxonomy is published for public comment in the fall. A�er any changes from this process are incorporated, the taxonomy is submitted to the SEC for final approval and then added to EDGAR, so filers can use the updated taxonomy.
Step 4: Implementation
EDGAR
TAXONOMY
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Click here to follow an actual ASU, Revenue Recognition, through this process.