FASB Q&As address application of taxonomy to pandemic disclosures

By Ken Tysiac

FASB issued a staff Q&A document Monday to clarify how to apply the U.S. GAAP Financial Reporting Taxonomy to disclosures related to the effects of the coronavirus pandemic and relief efforts.

The staff Q&As discuss how the taxonomy should be applied to:

  • The note to the financial statements specific to COVID-19 information.
  • The disclosure of the effect on the financial statements of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, related to the modifications of limitations on the deductibility of net operating losses.
  • The disclosure of the effect on the financial statements of the CARES Act related to the acceleration of alternative minimum tax credits under the CARES Act.
  • The disclosure of the effect on the financial statements of the CARES Act for amendments related to the depreciation of qualified improvement property under the CARES Act.
  • The disclosure of threshold values related to the specific provisions of CARES Act relief efforts.
  • The disclosure of deferred payroll taxes, employee retention credits, and deferred pension contributions related to CARES Act provisions.
  • The disclosure of transactions from lending programs under the CARES Act.
  • The disclosure of grants from government relief programs initiated in response to COVID-19.

FASB’s taxonomy staff cautioned that the responses provided in the Q&A should not be analogized to other facts and circumstances that were not specifically discussed. The staff will continue monitoring the situation and will communicate additional information as appropriate.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.

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