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What goes into the SEC approved 2022 GAAP financial reporting taxonomy and SEC reporting taxonomy?

Established in the 70s, the Financial Accounting Standards Board (FASB) is one of the oldest financial institutions in the U.S., an independent, private-sector, not-for-profit organization. The FASB establishes financial accounting and reporting standards for public and private companies that follow Generally Accepted Accounting Principles (GAAP). 

To structure the reporting process of financial data in accordance with iXBRL requirements, the FASB had submitted a proposed taxonomy to the U.S. Securities and Exchange Commission (SEC). Recently in March 2022, the FASB announced that the SEC had accepted the 2022 GAAP Financial Reporting Taxonomy (GRT) and the 2022 SEC Reporting Taxonomy (SRT) (collectively referred to as the “GAAP Taxonomy”). The 2022 DQC Rules Taxonomy (DQCRT), also submitted by the FASB as part of the GAAP Taxonomy, was also approved. 

What does the 2022 GAAP Taxonomy contain?

In the new taxonomy, there are updates for amendments to accounting standards and other recommended improvements to certain disclosure areas, such as:

  • credit losses
  • offset balance sheets 
  • pledging and recourse, and 
  • disapprovals from superseded guidance

What does the DQCRT Taxonomy contain?

The DQCRT focuses on conveying the XBRL US Data Quality Committee’s (DQC) validation rules. Therefore, its structure is different from the typical design of XBRL taxonomies. In this updated taxonomy, the FASB addressed the subset of DQC rules that evaluates the validation rules for inclusion in the DQCRT. Although these have been available for use for more than a year, the feedback on validation rules has been considered and included in the new taxonomy. 

 If you’d like to read all of the FASB Taxonomies and the associated release notes, click 2022 GRT, 2022 SRT, and 2022 DQCRT.

Are you prepared to integrate the updated taxonomy into your compliance process? We’re sure you have several questions about using the FASB Taxonomies and creating and submitting XBRL-tagged interactive data files in compliance with SEC rules. We’d love to address them for you. Get in touch with an XBRL Expert and learn how DataTracks can simplify compliance reporting for you.