Your Guide to the 2019 US GAAP Taxonomy

Your Guide to the 2019 US GAAP Taxonomy
May 7, 2019

The Securities and Exchange Commission announced the EDGAR system was updated March 11 to support the 2019 US GAAP Taxonomy (2019 UGT), the 2019 SEC Reporting Taxonomy (2019 SRT), and other SEC taxonomies. The 2019 taxonomies bring a variety of new considerations, including element updates and modeling changes.

We explore the latest taxonomy updates—with a deeper dive into the greatest areas of impact—below.

2019 US GAAP Taxonomy updates overview

The new taxonomy release introduced 831 element additions and 462 existing element modifications. The chart below illustrates the top areas of change.

Changed Elements
New Elements References Definition/
Label/Type
Deprecated
Total 831 462 788 295
Financial Instruments - Credit Loss (ASU 2016-13) 364 157 201 66
Long-Duration Insurance (ASU 2018-12) 287 81 66 12
Leases (ASUs 2016-02 and 2018-11) 5 9 33 1
Nonemployee Share-Based Payment (ASU 2018-07) 7 28 210 6
Other 168 187 278 210

Financial instruments-credit loss

A large amount of element modifications were included in this disclosure area based on the codification changes in Accounting Standards Update (ASU) 2016-13. The ASU impacted primarily the "incurred loss" methodology for recognizing credit losses. With ASU 2016-13, the amendments replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses. It also requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.

As a result, from an XBRL® perspective, a new section in the taxonomy was created: "326000—Disclosure—Credit Losses." This new section contains 364 new elements related to disclosures expected for assets measured at amortized cost. Main additions include roll forwards for allowance for credit loss, credit quality indicator by year of origination, and aging analysis for past due.

Additionally, disclosures around financing and loans and leases receivable have moved from a line item approach to a dimensional approach and will require remapping. For the elements that have been deprecated, it is a many-to-one replacement. Therefore, an auto-migration path cannot be specified. Filers need to review for any mapping changes that may apply to them.

Long-duration insurance

A new section in the taxonomy was created based on the codification changes in ASU 2018-12. The FASB's main objective for ASU 2018-12 is making targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity.

This section, "944100—Disclosure—Financial Services, Insurance, ASU 2018-12 Transition," contains 287 new elements and existing axes and elements that references were modified for ASU 2018-12. Main additions include roll forwards for insurance liabilities (future policy benefits, market risk benefits, separate accounts, and policyholder account balances), guaranteed minimum credit rating information, and insurance contract acquisition costs.

Nonemployee share-based payment

Another item to note: ASU 2018-07 expanded the scope of "Topic 718, Compensation—Stock Compensation" to include share-based payments issued to nonemployees for goods and services.

Existing section "710000—Disclosure—Compensation Related Costs, Share Based Payments" contains 210 modifications to documentation, label, and type. Included in these changes are revised definitions and labels of line item elements to remove employee/nonemployee and compensation cost terminology. Additionally, a new "Grantee Status [Axis] with Share-Based Payment Arrangement, Employee [Member]" and "Share-"ased Payment Arrangement, Nonemployee [Member]" were created.

Other

Beyond the updates made related to new accounting standards, FASB made various other conforming changes to the 2019 UGT. Among those other modifications, the 2019 UGT includes the deprecation of the "Predecessor [Member]" and "Success [Member]," which have been replaced with the new fixed list, "Financial Designation, Predecessor and Successor [Fixed List]." This new fixed list element should contain "Predecessor" or "Successor" as the fact values with the date context matching the predecessor period and successor period, respectively.

Another modification in the 2019 UGT is the inclusion of six new elements modeled after the Invest taxonomy. The Invest taxonomy, managed by the SEC, is anticipated to be discontinued some time in the future. These elements were added to the 2019 UGT in preparation for the change. Filers will not see these elements as deprecated as part of the migration, but filers should review them for use and consider updating to the UGT elements.

SEC Reporting Taxonomy (SRT)

The SEC Reporting Taxonomy (SRT) was introduced in 2018. The SRT contains XBRL tags for SEC-specific financial and schedule disclosure requirements as well as commonly used Axes and Members. This content was previously included in the US GAAP Taxonomy but has been moved from the UGT into the SRT to support both SEC US GAAP and IFRS XBRL filers in fulfilling these commission-specific requirements.

The 2019 SRT contains 101 new elements, 99 of which were moved from the US GAAP Taxonomy. The Range [Axis] is now called the Statistical Measurement [Axis] and contains two new members related to "ASU 2018-13—Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement." These new members are "Arithmetic Average [Member]" and "Median [Member]."

Taxonomy process improvement

Last year, the FASB introduced a new exposure process for future taxonomy updates. Specifically, taxonomy changes related to ASUs will be provided for public comment concurrent with the proposed ASU, compared to the prior practice of an annual 60-day comment period on the entire taxonomy at the end of the year, around early fourth quarter.

This process will continue for 2019 and is expected to enable better alignment between the accounting standards and the corresponding XBRL structure. There have already been three accounting standards issued, four exposed, and 11 more possible exposures in 2019. Additionally, there are five previously exposed standard updates that have not been finalized and could affect the 2020 taxonomy.

How should SEC filers approach taxonomy migration this year?

The 2017 and 2018 US GAAP taxonomies required major tagging updates for most filers. While migration to this year's new taxonomy does not contain as many significant modeling changes as found in previous years, ASU adoption and review of modified references should be a key focus.

To provide guidance to filers, the FASB offers a number of resources online:

Filers are also highly encouraged to look for additional 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 2017 taxonomy is not expected to be removed before June, it would be prudent for those who are using the 2017 version to have a plan in place well before the deadline.

Ask your service providers to guide you on the path to a successful migration this year.

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