FASB staff open 2027 reference and DQC rules proposals for comment
Staff at the US Financial Accounting Standards Board (FASB) have released two more proposals for the 2027 taxonomy cycle: improvements under the US Generally Accepted Accounting Principles (GAAP) Financial Reporting Taxonomy Reference Project, and a proposed 2027 Data Quality Committee (DQC) Rules Taxonomy. Comments on the Reference Project are due by 2 November, and on the DQC Rules Taxonomy by 20 November.
The reference work reaches across 25 Topics of the Accounting Standards Codification (ASC), from cash flows, credit losses, fair value and leases to a long run of industry Topics. It adds references to elements that meet presentation and disclosure requirements, links certain dimensional structures (tables, axes, domains and line items) to the requirements they support, points textual disclosures to text block elements, and reviews elements that lack references or still carry legacy reference roles. Elements are also being added and deprecated, labels updated and certain period types changed.
The DQC exposure covers ten rules developed by the XBRL US Data Quality Committee. Two are new, both dealing with how business development companies tag individual investments in their schedules of investments. Eight existing rules are revised or expanded, on subjects from lease liabilities and dividends to interest expense and employee benefits. A refinement to the long-standing negative values rule is also proposed.
Referencing does much for data quality: an element that states which requirement it serves is harder to misuse. The DQC route, with rules spending more than a year in use before the FASB staff consider them for the official taxonomy, is a good model for maturing validation.
Read more about the Reference Project here and the DQC Rules Taxonomy here.
