FASB Issues Update to its Conceptual Framework
The Financial Accounting Standards Board (“FASB”) continues to advance efforts to write consistent and effective disclosure rules in its standards. On August 28, the board published Concepts Statement (“CON”) No. 8, Conceptual Framework for Financial Reporting: Notes to the Financial Statements, which the FASB will use as a guide clarifying what information to consider when developing new disclosure requirements for future Accounting Standards Updates. Known as the “disclosure framework,” CON No. 8 will attempt to resolve a years-long debate over how much information should the board require from companies without them overloading financial statement footnotes with irrelevant details. The framework explains why. Read More.
FASB Continues Discussions on Disclosure Framework Project
During a discussion at last Wednesday’s meeting, the Financial Accounting Standards Board (“FASB”) made the following decisions on proposed FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8, Notes to Financial Statements: Nonprofits and private companies must be retained on the notes to financial statements. A discussion on the possible negative consequences of disclosures will be included. The disclosure of changes in line items not easily understood will be considered. The disclosure of alternative measures clearly useful in reviewing prospects for future cash flows will be considered. No disclosure objectives were established without giving specific requirements on how those objectives. Read More.
FASB to Update Definitions for Key Accounting Concepts
At its May 3 meeting, the Financial Accounting Standards Board (“FASB”) voted to expand efforts to update its Conceptual Framework. The decision impacts potential updates to Concepts Statement (“CON”) No. 6, Elements of Financial Statements, which provides definitions for key financial reporting concepts like assets, liabilities, and revenues. Board members also agreed to preserve the goal of financial reporting as mentioned in CON No. 8, Conceptual Framework for Financial Reporting—Chapter 1, the Objective of General Purpose Financial Reporting. Viewed as the main characteristic of the Conceptual Framework, the chapter says that a financial reporting’s objective is to offer useful financial. Read More.