FASB Still Working to Address Disclosure Overload in Financial Statement Footnotes
Since 2014, the Financial Accounting Standards Board (“FASB”) has been working to simplify U.S. GAAP disclosure requirements for financial statement footnotes. The project, which was released under Proposed Statement of Financial Accounting Concepts No. 2014-200, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, aimed to avoid writing rules that would lengthen a company’s financial statements without benefiting investors. Despite its efforts, the FASB has received frequent complaints from companies who were frustrated over the various disclosure requirements. Board representatives are also concerned about what they consider disclosure overload. They believed investors were becoming overwhelmed with additional information that. Read More.
Topics: Conceptual Framework Project, Disclosure Requirements, FASB, Financial Accounting Standards Board "FASB", Financial Statement Disclosures, Proposed Statement of Financial Accounting Concepts, U.S. GAAP
IASB Issues First Disclosure Initiative Update
Featuring projects for enhancing financial report information, the International Accounting Standards Board’s (“IASB”) Disclosure Initiative just received its first update . The update covers three topics, “Principles of Disclosure”, “Targeted Improvements to Disclosure Requirements” and “Materiality”. An integral part of the Disclosure Initiative, the “Principles of Disclosure” project seeks to substitute three of the IASB’s current standards with one or more disclosure standards. The second topic, “Targeted Improvements to Disclosure Requirements”, relates to the IASB’s exposure draft of proposed amendments to IAS 1 Presentation of Financial Statements. Rather than change current IAS 1 requirements, the amendments would provide more clarity, as. Read More.