Grant Thornton LLP recently submitted a comment letter in response to the FASB’s proposed ASU, Disclosure Framework – Changes to Interim Disclosure Requirements (Interim Reporting (Topic 270)). Overall, we support the Board’s efforts to promote consistency in entities’ disclosures by clarifying existing interim reporting guidance.
We agree with the proposal that a prospective transition method would be appropriate, given that most financial statements users already have the necessary information from historical filings, rendering retrospective application duplicative. Requiring retrospective application would create an added burden and cost for entities by requiring revised disclosures for periods that were previously reported on, yielding only a minimal benefit.
To read our comments in full, download the letter here.