FASB invites input on business combinations and software-related disclosures

Posted on November 10, 2024 by Editor

The Financial Accounting Standards Board (FASB) is inviting stakeholders to provide feedback on proposed updates to the Generally Accepted Accounting Principles (GAAP) Taxonomy for two key areas: accounting for internal-use software and transactions involving variable interest entities (VIEs) in business combinations.

These updates aim to enhance financial reporting in-line with modern digital business models, improving clarity around software-related costs and standardising disclosures for transactions involving VIEs.

The proposed updates are expected to increase transparency and comparability in financial reporting, especially as companies invest heavily in software.

Stakeholders can submit feedback on the VIE-related guidance until mid-December 2024 and on software-related updates until late January 2025.

Comments can be sent directly to FASB via email at [email protected].