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Certain exemptions are provided in the revenue standard to simplify the disclosure requirements for nonpublic reporting entities. Such reporting entities must follow the disclosure requirements described in FSP 33.4.1 through FSP 33.4.7 with some modifications. Figure FSP 33-4 summarizes the modifications to the disclosure requirements for nonpublic reporting entities.
Figure FSP 33-4
Nonpublic reporting entity disclosure considerations
Disclosure type
Related information
Disaggregated revenue
Nonpublic reporting entities may elect to not apply the quantitative disaggregation of revenue disclosure guidance discussed in FSP 33.3.1; however, if this election is made, the reporting entity must at a minimum disclose:
  • Revenue disaggregated according to the timing of transfer of goods or services (e.g., at a point in time and over time)
  • Qualitative information about how economic factors (e.g., type of customer, geographical location of customers, and type of contract) affect the nature, amount, timing, and uncertainty of revenue and cash flows
Reconciliation of contract balances
Nonpublic reporting entities can elect to disclose only the opening and closing balances of contract assets, contract liabilities, and receivables from contracts with its customers. The other disclosures described in FSP 33.3.2 (contract assets and contract liabilities) are optional.
Performance obligations
Descriptive disclosures of a reporting entity’s performance obligations are required for nonpublic reporting entities; however, disclosures regarding remaining unsatisfied or partially satisfied performance obligations are optional. Disclosures regarding revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods are optional. See FSP 33.3.3.
Significant judgments
Nonpublic reporting entities must disclose the following:
  • The methods used to recognize revenue (e.g., a description of the input method or output method) for performance obligations satisfied over time
  • The methods, inputs, and assumptions used to assess whether an estimate of variable consideration is constrained
The other disclosures of significant judgments as described in FSP 33.3.4 are optional.
Costs to obtain or fulfill a contract
Disclosures of assets recognized from the costs to obtain or fulfill a contract with a customer described in FSP 33.3.5 are optional.
Practical expedients
Disclosures on the use of practical expedients described in FSP 33.3 are optional.
Interim financial statement disclosures
The interim financial statement disclosures described in FSP 33.3.6 are optional.
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