Interim Reporting Narrow Scope Improvements (2025 BDO Comment Letter)
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On November 13, 2024, the FASB proposed improvements to the interim disclosure requirements. The proposal would:
- Clarify that Topic 270 applies to all entities that provide interim financial statements and notes in accordance with U.S. GAAP.
- Create a comprehensive list in Topic 270 of required disclosures in interim financial statements prepared in accordance with U.S. GAAP.
- Include a disclosure principle that would require entities to disclose events and changes that occur after the most recent fiscal year end that material affect the entity.
- Improve guidance about the form and content of interim financial statements.
In our comment letter, BDO supports the Board’s proposal to improve the understandability of ASC 270 and add a principle that would require an entity to disclose events and changes since the end of the last annual reporting period that have a material impact on the entity. BDO also suggested clarifications to improve the operability of the proposed guidance.