Staff at the Financial Accounting Standards Board issued two new implementation guides to help companies navigate the GAAP taxonomy in the areas of revenue recognition and consolidations.
Companies use the GAAP Financial Reporting Taxonomy to select the tags necessary to complete their XBRL filings. FASB staff have produced a series of implementation guides to give preparers some supplemental guidance on using the taxonomy to create their XBRL documents.
The new implementation guide on revenue is intended to demonstrate the modeling for disclosures that companies must provide to comply with the new standard on recognizing revenue in financial statements, Accounting Standards Codification Topic 606. The new accounting standard took effect for calendar year-end public companies on Jan. 1, 2018.
The implementation guide provides examples to help users of the taxonomy understand how the modeling for disclosures under the new revenue standard is structured within the taxonomy. It also provides examples to illustrate modeling for the cost of revenue in the income statement.
FASB says the examples in the guide are not meant to address all the potential model configurations that are possible under the standard, nor to dictate the appearance or structure of an entity’s own extensions or disclosures. The guide provides nearly a dozen examples for companies to consider.
The second implementation guide demonstrates the dimensional modeling for disclosures of consolidated and nonconsolidated entities. The examples are meant to help users understand how modeling for those disclosures is structured within the taxonomy. As with the revenue guide, the guide on consolidated and nonconsolidated entities doesn’t address all potential model confirmations and is not meant to dictate a specific appearance or structure.
The examples in the consolidated and nonconsolidated entities guide assume that an entity meets the criteria for reporting disclosures of consolidated and nonconsolidated entities under U.S. GAAP or other authoritative literature of the Securities and Exchange Commission. FASB says for illustration purposes, the reported line items within the examples do not include all reporting requirements and represent only partial disclosures and statements.