Version 1.0. Liquidation Basis of Accounting (UGT Version 2014) FASB U.S. GAAP Financial Reporting Taxonomy (UGT) Implementation Guide Series

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1 Version 1.0 Issued: July 8, 2013 Comments Due: September 6, 2013 Liquidation Basis of Accounting (UGT Version 2014) FASB U.S. GAAP Financial Reporting Taxonomy (UGT) Implementation Guide Series This draft is issued by the Financial Accounting Standards Board (FASB) to solicit views on this proposed style guide. Written comments should be addressed to: Chief of Taxonomy Development File Reference No

2 The UGT Implementation Guide is not authoritative; rather, it is a document that communicates how the U.S. GAAP Financial Reporting Taxonomy (UGT) is designed. It also provides other information to help a user of the UGT understand how elements and relationships are structured. Notice to Recipients of This Draft The FASB invites individuals and organizations to send written comments on all matters in this draft or to send comments using the Electronic Feedback Form. Responses from those wishing to comment on the Proposed UGT Implementation Guide must be received in writing by September 6, Interested parties should submit their comments by to xbrlguide@fasb.org, File Reference No Those without should send their comments to Chief of Taxonomy Development, File Reference No , FASB, 401 Merritt 7, PO Box 5116, Norwalk, CT Do not send responses by fax. The FASB will make all comments publicly available by posting them to the Online Comment Letters XBRL Page. An electronic copy of this proposed UGT Implementation Guide is available on the FASB s website. Copyright 2013 by Financial Accounting Foundation. All rights reserved. Permission is granted to make copies of this work provided that such copies are for personal or intraorganizational use only and are not sold or disseminated and provided further that each copy bears the following credit line: Copyright 2013 by Financial Accounting Foundation.

3 Questions for Respondents The Financial Accounting Standards Board (FASB) Staff invites comments on all matters in this draft, particularly on the issues and questions below, but respondents need not comment on all issues. Comments are requested from those who agree with the ideas expressed as well as from those who do not agree. Comments are most helpful if they identify and clearly explain the issue or question to which they relate. Those who disagree with the ideas expressed included herein are asked to describe their suggested alternatives, supported by specific reasoning. 1. Do you agree that the examples provide sufficient information to apply the UGT elements and modeling structure for liquidation basis of accounting? If not, why are they not sufficient? 2. Are there other examples for liquidation basis of accounting that would be beneficial to include in the guide? If yes, what are they? 3. Do you agree that the modeling structure within the UGT for liquidation basis of accounting facilitates data consumption and improves comparability? If not, why not? 4. Do you agree that this implementation guide addresses common reporting practices related to liquidation basis of accounting? If not, what common reporting practices are not included? 5. Are there difficulties, challenges, or unintended consequences in applying the modeling structure for liquidation basis of accounting as illustrated in this guide? If yes, what are they? 6. Do you agree with the modeling approach to use Liquidation Basis of Accounting [Member] to dimensionally qualify each fact value reported under liquidation basis? If not, why not? 7. Is there another approach that would provide a better modeling structure for liquidation basis of accounting? If yes, what alternative would you propose? 1

4 UGT Implementation Guide on Modeling Liquidation Basis of Accounting Overview The purpose of this Implementation Guidance is to demonstrate the modeling for disclosures related to the liquidation basis of accounting. These examples are not intended to encompass all of the potential modeling configurations or to dictate the appearance and structure of an entity s extension taxonomy. The examples are provided to help users of the U.S. GAAP Financial Reporting Taxonomy (UGT) understand how the modeling for disclosures reported under liquidation basis of accounting is structured within relationship group of the UGT. The examples are based on the assumption that the entity meets the criteria to apply liquidation basis of accounting under U.S. GAAP. In addition, the reported line items within the examples are not all inclusive and represent only partial statements for illustration purposes. While constituents may find the information in this guide useful, users looking for guidance to conform to SEC XBRL filing requirements should look to the SEC EDGAR Filer Manual and other information provided on the SEC website at xbrl.sec.gov. The modeling has been completed using the elements in the UGT. Additional extension member elements are created to report certain disclosures. This guide focuses on detail tagging only (Level 4); it does not include any elements for text blocks, policy text blocks, and table text blocks (Levels 1 through 3). The Implementation Guide provides two examples: Example 1 Statement of Net Assets in Liquidation Example 2 Statement of Changes in Net Assets in Liquidation Modeling Liquidation Basis of Accounting Liquidation Basis of Accounting [Member] under Scenario [Axis] is available to dimensionally qualify primary line item elements that are reported under liquidation basis. Users of the UGT will need to select Liquidation Basis of Accounting [Member] in order to distinguish any fact value reported under liquidation basis. Common Information for Both Examples Company ABC adopted the liquidation basis of accounting as of November 18, 20X0. ASU Presentation of Financial Statements The Liquidation Basis of Accounting became effective for annual reporting periods beginning after December 15, 20X0, and therefore the company adjusted the 2

5 beginning balance of net assets as of January 1, 20X1 under liquidation basis to conform to the new standards prescribed by the ASU when preparing 10-Q for the first quarter of 20X1. The Company prepared Statements of Net Assets in Liquidation as of March 31st, 20X1 and Statements of Changes in Net Assets in Liquidation for the three months ended March 31, 20X1. (1) We have provided a legend for common dimension and members associate with facts contained in the financial statements. (2) Elements that have instant period type and elements that have duration period type are indicated as such in Figure x.2 of each example. Instant elements have a single date context (such as March 31, 20X1) while duration elements have a starting and ending date as its context (such as January 1 to March 31, 20X1). (3) Instance documents (Figure x.3 in each example) do not indicate the context in which the elements are being reported. Refer to Period Type Column of Figure x.2 in each example for the period type. 3

6 Example 1 Statement of Net Assets in Liquidation This example illustrates the modeling of a portion of a Statement of Net Assets in Liquidation. Figure 1.1 4

7 The UGT elements used to tag these facts are: Figure 1.2 The instance document created using this modeling structure is provided below. Figure 1.3 5

8 Notes: Assets and liabilities are reported on an unclassified basis and therefore line item elements selected are unclassified assets and liabilities elements accordingly. Liquidation Basis of Accounting, Items Previously Not Recognized (L5) is used to tag the fact value for items the Company had previously not recognized but expects to sell in liquidation. Liquidation Basis of Accounting, Accrued Costs to Dispose of Assets and Liabilities (L10) is used to tag the fact value for the accrual of estimated costs to dispose of assets and liabilities. As a general principle, Liquidation Basis of Accounting [Member] (M1) should be used in conjunction with each primary line item elements to indicate a fact value is reported under liquidation basis. See note (3) on page 3 for the explanation of context in the instance document. ** Preferred Labels are the labels created and used by the company to show the line item captions in its financial statements. 6

9 Example 2 Statement of Changes in Net Assets in Liquidation This example illustrates the modeling of a portion of a Statement of Changes in Net Assets in Liquidation. Figure 2.1 7

10 The UGT elements used to tag these facts are: Figure 2.2 8

11 The information within the instance document created using the UGT is provided below. Figure 2.3 Notes: Cumulative Effect of Prospective Application of New Accounting Principle (L12) along with Accounting Standards Update [Member] (M2) is used to tag the cumulative effect adjustment for a company, that applied a form of liquidation basis of accounting before ASU became effective, to make the transition to liquidation basis of accounting under ASU when preparing the Statement of Change in Net Assets in Liquidation. The opening amount of net assets under liquidation basis has been adjusted as illustrated in the example above. Fact value $7,329 was entered as a positive amount because Cumulative Effect of Prospective Application of New Accounting Principle (L12) has credit balance attribute. As indicated in the element s definition, it represents deduction from Net Assets (L1) to the adjusted amount Net Assets, Adjusted Balance (L3). The adjusted net assets balance is tagged by element Net Assets, Adjusted Balance (L13) along with Liquidation Basis of Accounting [Member] (M1). 9

12 As a general principle, Liquidation Basis of Accounting [Member] (M1) should be used in conjunction with a primary line item elements to indicate that a fact value is reported under liquidation basis. Liquidation Basis of Accounting, Remeasurement, Gain (Loss) on Accrued Costs to Dispose of Assets and Liabilities (L14), Liquidation Basis of Accounting, Remeasurement, Gain (Loss) on Asset (L15) and Liquidation Basis of Accounting, Remeasurement, Gain (Loss) on Items Previously Not Recognized (L16) are used to tag subsequent changes in measurement after initial recognition. Liquidation Basis of Accounting, Remeasurement, Gain (Loss) on Asset (L15) could be further dimensionally qualified using members (or extension members) under Asset Class [Axis] if a company separately reports individual asset categories for adjustment in the subsequent period after initial recognition, for example, Property, Plant and Equipment [Member] and Indefinite-lived Intangible Assets [Member]. See note (3) on page 3 for the explanation of context in the instance document. ** Preferred Labels are the labels created and used by the company to show the line item captions in its financial statements. 10