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Pushback Expected on Accounting Plan to Require Expense Details

May 12, 2022, 9:34 PM

US accounting rulemakers want companies to provide new details about key expenses like labor and raw materials in their income statements.

Now comes the hard part: writing requirements that satisfy investor demands for bottom-line insight while assuring businesses that they won’t have to reveal competitive information.

The Financial Accounting Standards Board got a preview of the pushback it will face when it met Thursday with its panel of small business advisers. In one corner, representatives of business said potential new requirements to expand the generic captions of selling, general and administrative, or SG&A expenses, cost of services, and other ...