December 16, 2021
The Small Business Advisory Committee (SBAC) met virtually on December 16, 2021. At the meeting, the SBAC members provided input on the following topics:
- FASB’s Interaction with Stakeholders: SBAC members provided feedback on the FASB’s efforts on investor outreach as well as educational support for stakeholders. SBAC members complimented the high level of stakeholder engagement in the June 2021 Invitation to Comment, Agenda Consultation, and encouraged the Board to incorporate the feedback in future decision making. Members shared their experience in how they (or their clients) get educated and prepared for the adoption of new accounting standards. Members noted that while the FASB’s educational resources are used, nonauthoritative resources published by others, including accounting firms, are more frequently utilized. Several members suggested incorporating the Basis for Conclusion section of Accounting Standards Updates into the Codification.
- Disclosure Framework: Disclosures—Interim Reporting: FASB staff updated the SBAC on proposed amendments to Topic 270, Interim Reporting. SBAC members discussed the purpose and impact of incorporating the catch-all principle previously included in SEC rules on interim reporting in Topic 270. SBAC members generally agreed with the proposed amendments to clarify the form and content of interim financial statements and notes, the addition of a catch-all disclosure principle, and the proposed updated language intended to specify comparative disclosures.
SBAC Meeting Recaps are provided for those interested in following the activities of the SBAC. Official positions of the SBAC are reached only after extensive due process and deliberations. More details on the SBAC’s input on the FASB’s projects can be found within the meeting minutes, which will be published on the FASB website in the coming weeks.