Disclosure Framework Review Necessary before Finalizing Materiality Guidance
Before the Financial Accounting Standards Board (“FASB”) finalizes proposed changes to the materiality guidance, Russell Golden says the board must complete a thorough review of its disclosure framework project. Speaking recently at the Financial Accounting Foundation’s quarterly meeting, the FASB chairman told attendees that the standard setter plans to evaluate all phases of its project to update the disclosure requirements under U.S. generally accepted accounting principles (“U.S. GAAP”) by the end of the year. The review is expected to be finished by year’s end, with final changes to the materiality guidance scheduled for a 2017 release. In September, the FASB. Read More.
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.