Project Update

Disclosure Framework—Disclosure Review: Inventory

Last updated on October 10, 2017. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.

(Updated sections are indicated with an asterisk *)

The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.

Project Objective and Overview
Due Process Documents
Decisions Reached at Last Meeting
Tentative Board Decisions Reached to Date
Next Steps
Board/Other Public Meeting Dates
*Contact Information

Project Objective and Overview

The objective and primary focus of the Disclosure Framework project is to improve the effectiveness of disclosures in notes to financial statements by clearly communicating the information that is most important to users of each entity’s financial statements. Achieving the objective of improving effectiveness will require development of a framework that promotes consistent decisions about disclosure requirements by the Board and the appropriate exercise of discretion by reporting entities.

To achieve that objective, the Disclosure Framework project comprises two components: the Board’s Decision Process and the Entity’s Decision Process.

The Board has decided to perform reviews of four areas that will incorporate both components of the Disclosure Framework project. Therefore, each review will include (1) an evaluation of existing disclosure requirements within the Topic after applying the concepts in the Board’s decision process and (2) consideration of ways to promote the appropriate use of discretion specifically within the Topic.

This page provides updates on the disclosure review of inventory (Section 330-10-50). For information on the other three disclosure reviews, see the following:
  1. Defined benefit plans (Section 715-20-50)
  2. Fair value measurement (Section 820-10-50)
  3. Income taxes (Section 740-10-50)
Additionally, disclosure requirements for interim reporting are being evaluated for modifications.

The FASB staff has developed a “Q&A: FASB’s Disclosure Framework Project” fact sheet, which can be viewed here.

Due Process Documents

On January 10, 2017, the Board issued a proposed Accounting Standards Update, Inventory (Topic 330): Disclosure Framework—Changes to the Disclosure Requirements for Inventory. The due date for comment letters was March 13, 2017.

Decisions Reached at Last Meeting (June 21, 2017)

The Board discussed a summary of comments received on the proposed Accounting Standards Update, Inventory (Topic 330): Disclosure Framework—Changes to the Disclosure Requirements for Inventory. No decisions were made.

Tentative Board Decisions Reached to Date (As of June 21, 2017)

Tentative Board Decisions to Date

Next Steps

As directed by the Board, the staff will conduct additional outreach and research on the proposed disclosure requirements for changes to the inventory balance. The Board also asked the staff to consider the application of those proposed disclosures to companies within manufacturing and wholesale businesses and the needs of financial statement users in those industries.

The staff will present a plan for redeliberations collectively with the other Disclosure Framework projects at a future meeting.

Board/Other Public Meeting Dates

The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.

June 21, 2017 Board Meeting—Inventory Disclosures
November 16, 2016 Board Meeting—Inventory Disclosures
September 19, 2016 Board Meeting—Inventory Disclosures
August 24, 2016 Board Meeting—Inventory Disclosures
July 27, 2016 Board Meeting—Inventory Disclosures
January 7, 2015 Board Meeting—Scope of Disclosure Review
April 4, 2014 Board Meeting—Field Study Results and Next Steps

*Contact Information

Elizabeth Gagnon
Project Manager

Haoran Jiang
Postgraduate Technical Assistant

Kelly Coyne
Postgraduate Technical Assistant