The Financial Accounting Standards Board (FASB) recently issued Accounting Standards Update (ASU) 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, to clarify interim disclosure requirements, the form and content of interim financial statements, and when Topic 270 applies. The FASB expects these clarifications will enhance consistency in reporting for all entities that prepare interim financial statements and notes in accordance with generally accepted accounting principles (GAAP).
The amendments in the ASU provide a list of specific interim disclosures that are required by GAAP, which, together with the disclosure principle described below, represent the complete population of required disclosures in interim reporting periods. By compiling existing interim disclosure requirements from throughout the Accounting Standards Codification into one comprehensive list in Topic 270, the FASB intended to provide clarity about existing requirements and did not intend to expand or reduce those requirements.
The disclosure principle added by the ASU was modeled after a superseded Securities and Exchange Commission (SEC) requirement for entities to disclose events and changes since the end of the last annual reporting period that are expected to have a material impact on the entity. The intent of the disclosure principle is to help entities determine whether any disclosures not specified in Topic 270 should be provided in interim reporting periods.
The amendments in ASU 2025-11 are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, for public business entities and for interim reporting periods within annual reporting periods beginning after December 15, 2028, for entities other than public business entities. Early adoption is permitted. Entities may adopt these amendments prospectively for interim reporting periods beginning after the date of adoption or retrospectively to any or all prior periods presented in the interim financial statements.
