Apple, Charter, Starbucks and other corporate giants worry about the impact of the Financial Accounting Standards Board’s plan

  • Executives at large public companies express concern about proposed expansion of disclosure on expenses
  • Companies such as Apple, Charter, and Starbucks call for revision of the proposal
  • Concerns include significant costs, disclosure overload, and misleading results for investors
  • Proposed requirements could be administratively difficult to implement for companies with complex inventory-cost methods
  • Apple suggests creating a single definition for inventory and manufacturing expense based on existing accounting guidance

Executives at large public companies, including Apple, Charter, and Starbucks, are expressing concern about the Financial Accounting Standards Board’s (FASB) proposed expansion of disclosure on expenses. The proposal, which mandates quarterly disclosure of employee compensation, depreciation of property and equipment, amortization of intangible assets, and inventory expenses, has raised significant concerns among businesses. Companies such as Charter have stated that the proposal would result in significant additional costs with no real benefit to investors. Additionally, the proposed requirements could lead to disclosure overload and potentially mislead investors. Starbucks has questioned its ability to accurately break down its inventory and manufacturing expenses under the proposal, citing the complexity of its supply chain. Apple, while generally agreeing with the proposal, has suggested creating a single definition for inventory and manufacturing expense based on existing accounting guidance. Overall, these concerns highlight the potential challenges and costs associated with implementing the FASB’s proposed expansion of expense disclosure.

Factuality Level: 7
Factuality Justification: The article provides information about the concerns of executives at large public companies regarding the Financial Accounting Standards Board’s proposal. It includes quotes from executives at companies such as Apple, Starbucks, and Charter Communications expressing their concerns about the proposal and the potential costs and lack of benefit to investors. The article also mentions that the FASB plans to review public responses and hold a roundtable to gather feedback. Overall, the article presents the viewpoints of different companies and provides information about the proposal and its potential impact.
Noise Level: 7
Noise Justification: The article provides information on the concerns of executives at large public companies regarding the Financial Accounting Standards Board’s proposal. It includes quotes from executives at companies such as Apple, Starbucks, and Charter Communications, who argue that the proposal would impose significant costs without benefiting investors. The article also mentions that the FASB plans to review public responses and hold a roundtable to gather feedback. Overall, the article stays on topic and provides evidence through quotes from executives.
Financial Relevance: Yes
Financial Markets Impacted: The article pertains to the Financial Accounting Standards Board’s plan and its potential impact on large public companies such as Apple, Starbucks, Charter Communications, Boeing, and Sherwin-Williams.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the concerns of large public companies regarding the Financial Accounting Standards Board’s proposal to further break down labor and other operating expenses on income statements. While this proposal may have financial implications for the companies involved, it does not describe an extreme event or its impact.
Public Companies: Starbucks (null), Charter Communications (null), Apple (null), Boeing (null), Sherwin-Williams (null)
Key People: Rachel Ruggeri (Chief Financial Officer), Kevin Howard (Chief Accounting Officer and Controller), Chris Kondo (Senior Director of Corporate Accounting and Principal Accounting Officer), Allen Mistysyn (CFO)

Reported publicly: www.wsj.com