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.
FASB Announces Topics for September 3rd Board Meeting
Prepping for its board meeting Wednesday, the Financial Accounting Standards Board (“FASB”) has announced the three topics it will cover: Financial instruments—impairment. FASB will continue to discuss Proposed Accounting Standards Update, Financial Instruments—Credit Losses (Subtopic 825-15). The discussion will focus on write-off guidance and clarifying the term which an entity should estimate its projected credit losses for financial instruments. Disclosure framework: disclosure review—fair value measurement. FASB plans to cover application to fair value disclosures of the concepts in the proposed FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements. While no decisions are anticipated from the discussion, prospective. Read More.