Scott Tornberg, partner at PwC, participated in a video interview in conjunction with Nareit’s REITworks: 2022 Conference in La Quinta, California, on Sept. 12-13.
Tornberg discussed a recent report by the FASB on its agenda consultation, noting that it focuses on a theme of disaggregation.
“Disaggregation of the cash flow statement…of certain components within the income statement, income tax disclosures,” he said. “They’re looking for more detailed information in certain cases.”
He added that, along with disaggregation, respondents were aligned with cryptocurrency and ESG measurement priorities.
Turning to other current FASB projects that could impact REITs, Tornberg noted a financial instrument project related to ESG, a tax credit project that impacts low-income housing and historical buildings, and a segment reporting project.
“While most REITs tend to have a single segment, there is more emphasis on certain disclosures that are required per the standard that is out there,” he said.
Tornberg added that although there are a multitude of ESG standard setters for REITs to comply with, the International Sustainability Standards Board (ISSB) has taken charge of many of them. But “the U.S., though, has a lot of work to do as far as bringing it under one body,” he said.