LAs of March 18, 2024, the EDGAR® system was updated to support the 2024 GAAP Financial Reporting Taxonomy (2024 GRT) and other SEC taxonomies releases. The 2024 taxonomies bring a variety of changes, including element updates and modeling changes.
2024 GAAP Financial Reporting Taxonomy Updates Overview
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 2024 GRT, while various elements and areas were impacted, key updates related to the below topics.
Accounting Standards Updates
The 2024 GRT includes updates related to multiple accounting standard updates (see below for ASUs impacting the taxonomy). Modifications to existing elements, deprecation of elements, and new elements were added to the taxonomy for these disclosure requirements.
| ASU # | ASU |
| ASU 2023-01 | Leases (Topic 842): Common Control Arrangements |
| ASU 2023-02 | Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method |
| ASU 2023-04 | Liabilities (Topic 405): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 121 |
| ASU 2023-05 | Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement |
| ASU 2023-06 | Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative |
| ASU 2023-07 | Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures |
| ASU 2023-08 | Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets |
| ASU 2023-09 | Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
- FILER ACTION: Filers should review current XBRL® modeling against the new standard and modified elements provided in the taxonomy.
Employee Benefit Plans (SEC Form 11-K)
New elements were added to the new US GAAP Employee Benefit Plan (EBP) taxonomy for the SEC Release Nos. 33-11070; 34-95025 requiring tagging of annual reports for employee stock purchase, savings, and similar plans filing SEC Form 11-K. These new elements can be identified by the prefix “us-gaap-ebp” and they are contained in sections beginning with “9611” through a separate entry point from the US GAAP taxonomy.
- FILER ACTION: Filers should evaluate these new elements as they prepare their SEC Form 11-K to comply with this new mandate effective for filers beginning after July 11, 2025.
Other 2024 US GAAP Taxonomy Updates
Modifications were made to the taxonomy to accommodate for disclosures on leases not yet commenced. To supplement this update, the FASB taxonomy team updated the taxonomy implementation guide for “Leases Under Topic 842” by adding Example 5 – Lessee – Leases Not Yet Commenced Obligation.
Additional elements were added to the taxonomy to accommodate for disclosure requirements for Government Assistance (specifically ASC 832-10-50-3).
Modifications were made to the taxonomy as it relates to financial statement location axes. Two new axes were added to the taxonomy to address when the “Statement of Financial Position Location, Balance [Axis]” is not being utilized as intended. To supplement this change, the FASB taxonomy team proposed a new taxonomy implementation guide “Financial Statement Location Dimensions: A Guide for Preparers.”
- FILER ACTION: Filers should evaluate the modifications that were made to the taxonomy and the supplemental resources released by FASB that may be applicable to their reporting scenarios.
Technical Taxonomy Improvements
The FASB taxonomy team continues to make technical improvements to help filers with taxonomy implementation. The 2024 taxonomies provide improvements to existing features.
- Taxonomy Implementation Notes (TINs): FASB introduced 393 new TINs in the 2024 GRT. FASB categorizes TINs into four areas (Resource, Transition, Usage, and Value). A majority of the new TINS are Usage and Resource TINs related to FASB GAAP Financial Reporting Taxonomy Implementation Guides.
- 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. Twenty-four additional DQC rules were added to the 2024 DQCRT bringing it to a total of 46 rules. The SEC EDGAR system validates DQC rules that are included in the 2024 DQCRT.
How should SEC filers approach taxonomy migration this year?
This year’s new taxonomy focused on key topical areas (Accounting Standards Updates and Employee Benefit Plans) and technical taxonomy improvements. We recommend filers not only focus on deprecated elements but also 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:
- Webcast – 2024 GAAP and SEC Reporting Taxonomy Improvements and SEC Update
- Taxonomy Release Notes
- Taxonomy Implementation and Style Guides
- FASB Frequently Asked Questions (FAQs)
Last, but not least, please keep in mind that companies are encouraged to use the most recent taxonomy release for their XBRL filing. Even though the 2022 taxonomy is not expected to be removed before June, for those who are currently using the 2022 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.
