This blog first appeared on Workiva.com. Written by Sammi Azoulay.
As of March 21, 2022, the Securities and Exchange Commission’s EDGAR system was updated to support the 2022 GAAP Financial Reporting Taxonomy (2022 GRT) and other SEC taxonomies releases. The 2022 taxonomies bring a variety of changes, including element updates and modeling changes.
2022 GAAP Financial Reporting Taxonomy updates overview
The chart below illustrates the summary of changes in the GRT taxonomy.
Element and modeling updates
The Financial Accounting Standards Board (FASB) taxonomy team continues to enhance the taxonomy to address required Accounting Standards Updates, common reporting practices, and designing projects focused on improving the utility of the taxonomy. For the 2022 GRT, while various elements and areas were affected, key updates were related to the topics below:
1. ASC Topic 326 - Financial Instruments - Credit Losses:
The 2022 GRT includes updates related to ASC 326 and credit losses. Additional new elements have been introduced for companies that elected a policy to exclude accrued interest from certain values.
- Filer Action: Filers should evaluate new concepts that may be applicable to their reporting scenarios.
2. Taxonomy Topical Project - Balance Sheet Offsetting:
As part of the FASB taxonomy team's review of balance sheet offsetting elements, modifications to existing elements and new elements were added to the taxonomy to improve the modeling for these disclosures.
- Filer Action: Filers that disclose balance sheet offsetting should review current XBRL® modeling against the new standard and modified elements provided in the taxonomy.
3. Taxonomy Topical Project - Pledge/Recourse
Updates were made to the modeling for pledging and recourse reporting. New dimensional elements and extensible enumerations were added to the taxonomy to indicate pledging purpose and status and recourse status.
- Filer Action: Filers previously using the pledging and recourse line item concepts that are now deprecated should review elements used for pledged assets and remodel disclosure to convey dimensional approach using new and existing axes and new extensible enumerations. Additionally, FASB has added two new FAQs, 2.17 and 2.18, to provide additional clarification in tagging these disclosures.
4. Other Updates
Other updates include deprecations related to accounting standard updates, new elements added for FASB FAQ 2.15, a new taxonomy section for government assistance disclosures, and new elements for accounting changes as related to changes in reporting entity.
Technical taxonomy improvements
The FASB taxonomy team continues to make technical improvements to help filers with taxonomy implementation. The 2022 taxonomies provide improvements to existing features.
Taxonomy Implementation Notes (TINs): FASB introduced 779 new TINs for 631 elements in the 2022 GRT. Of the four categories introduced in the 2021 GRT (Resource, Transition, Usage, and Value), 440 are Transition TINs. A majority of the Transition TINs are related to ASC Topic 326 - Financial Instruments - Credit Losses.
XBRL US DQC Rules Taxonomy (DQCRT): The DQCRT includes XBRL US Data Quality Committee (DQC) rules to provide additional visibility to data quality validation rules for XBRL filings with the SEC. Nine additional DQC rules were added to the 2022 DQCRT, bringing it to a total of 15 rules. The SEC EDGAR system validates DQC rules that are included in the 2022 DQCRT.
How should SEC filers approach taxonomy migration this year?
This year's new taxonomy focused on key topical areas (Credit Losses, Balance Sheet Offsetting, and Pledging and Recourse) and technical taxonomy improvements. We recommend filers not only focus on deprecated elements but review new elements, modified labels and definitions, and updated data types.
To provide guidance to filers, the FASB offers a number of resources on their website:
Workiva is hosting its annual taxonomy updates webinar on June 1, 2022. Register here to watch. For other learning opportunities, watch the Workiva calendar of events for upcoming webinars and workshops on filing best practices, XBRL tagging, and more.
Last but not least, please keep in mind that the SEC strongly encourages you to use the most current version of the taxonomy for your filings. Even though the 2020 taxonomy is not expected to be removed before June, for those who are using the 2020 version, it would be prudent to have a plan in place well before the deadline. Your service providers can also help you on your path to a successful migration this year.
If you need assistance with migration, XBRL tagging, or learning more about how Workiva can help, please reach out, and we will get back to you shortly.
XBRL® is a trademark of XBRL International, Inc. All rights reserved. The XBRL® standards are open and freely licensed by way of the XBRL International License Agreement.
Please sign in to leave a comment.