Materiality Proposal Receives Praise and Criticism
Comment letters on the Financial Accounting Standards Board’s (“FASB”) materiality proposal reveal mixed sentiment among companies, investors and consumer groups. Proposed Accounting Standards Update No. 2015-310, Notes to Financial Statements (Topic 235): Assessing Whether Disclosures Are Material, would establish materiality as a legal concept to help companies determine what information to include in their financial statement footnotes. Numerous companies have voiced their support of the plan. Comcast Corp., for instance, said the proposed clarification to the definition of materiality would be consistent with the FASB’s efforts of making disclosures more useful for investors. Another supporter, Financial Executives International, commented that. Read More.