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An issue currently being discussed at the FASB is the disaggregation of income statement expenses. 'Disaggregation' refers to the level of detail provided in an
An issue currently being discussed at the FASB is the disaggregation of income statement expenses. 'Disaggregation' refers to the level of detail provided in an income statement; the more disaggregated, the more detail in terms of the number of line items, their descriptiveness, etc. Under current GAAP, companies have discretion when preparing an income statement. The current proposal would impose standardization on the level of detail companies provide in their income statements. Suppose you are an auditor. Explain whether you favor or oppose disaggregation of the income statement, and why. Be specific in your response, including examples as appropriate. [Input your response below. Suggested length of 4-6 sentences.]
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