The FASB issued a guide on formatting the required disclosures for reinsurance companies’ concentrations of credit risk in the eXtensible Business Reporting Language (XBRL). The guide provides examples to help companies and auditors understand the modeling for disclosures of reinsurance-related concentrations of credit risk.
The FASB issued on August 7, 2014, a final guide on formatting the required disclosures for reinsurance companies’ concentrations of credit risk in the eXtensible Business Reporting Language (XBRL).
The U.S. GAAP Financial Reporting Taxonomy (UGT) Implementation Guide, Insurance Industry: Concentration of Credit Risk Disclosures, provides examples to help companies and auditors understand the modeling for disclosures of reinsurance-related concentrations of credit risk, the FASB said. The guide follows the 2014 U.S. GAAP Financial Reporting Taxonomy, which is developed by the FASB’s parent organization, the Financial Accounting Foundation (FAF).
The taxonomy is the set of data definitions for formatting a financial statement in XBRL, a form of interactive data that reformats financial statements to allow computers to read them and improve investors’ ability to analyze the information.
The FASB also recently issued Proposed UGT Implementation Guide, Disposal Groups and Discontinued Operations, to provide examples of how to model groups that have been sold or shut down, including discontinued operations. The guide matches the draft of 2015 U.S. GAAP Taxonomy. The FASB said it wants written comments submitted by October 6, 2014.
The guides’ examples are based on the assumption that an organization is required to disclose its concentrations of credit risk and discontinued operations. The guides are part of a series of publications the FASB has released to help companies format financial statements in XBRL.
In July, the SEC asked companies to provide more information about their calculations of line items in financial statements prepared in XBRL. In the Dear CFO Letter, Sample Letter Sent to Public Companies Regarding XBRL Requirement to Include Calculation Relationships , the SEC said its staff in the Division of Corporation Finance, during their reviews of company filings, had found instances when companies failed to explain how they calculated the XBRL data.