Employee Benefit Plans Excluded from Disclosure Framework
As the Financial Accounting Standards Board (“FASB”) moves forward with finalizing its disclosure framework, the board has decided to exclude employee benefit plans from the guidance. Agreed upon at its October 4 meeting, the FASB said confirmed that employee benefit plans will not be evaluated similarly as other entities when the board decides whether they are required to disclose certain information. The decision was based on the FASB’s belief that an employee benefit plan’s financial statements and its users are significantly different from organizations to allow for possibly different reporting considerations. While most FASB members agreed with this sentiment, Christine. Read More.
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