FASB Offers Q&A Fact Sheet on Disclosure Framework
by Terri Eyden on
By Jason Bramwell
In an effort to clarify the facts about the Financial Accounting Standards Board (FASB) Disclosure Framework project, the standard-setting organization has created a questions-and-answers fact sheet about the initiative.
For its Disclosure Framework project, the FASB is working on ways to improve the effectiveness of disclosures in notes to financial statements for public and private companies as well as not-for-profit organizations.
"The framework is designed to lead to disclosures that clearly communicate the information that is most important to the users of financial statements," the FASB stated in the fact sheet. "It is intended to promote consistent decisions by the FASB about disclosure requirements and guide reporting organizations when making disclosure decisions."
The fact sheet, which was created by FASB staff in response to stakeholders' questions, provides additional information on how the project comprises two components: the board's decision-making process and the entity's decision-making process.
The fact sheet includes answers to the following nine frequently asked questions about the disclosure initiative:
- What is the board's decision process?
- Is the primary goal of the Disclosure Framework project to reduce the volume of the notes to financial statements?
- Don't existing disclosure requirements lead to unnecessary volume?
- Will the board's decision process require preparers to disclose predictions and forecasts of future cash flows?
- Will disclosure overlap between US Generally Accepted Accounting Principles (GAAP), US Securities and Exchange Commission (SEC) rules, and other regulatory requirements be eliminated?
- Will the board's decision process address interim reporting?
- How are investor concerns being taken into account in the project?
- How does the Disclosure Framework project relate to private companies?
- What types of organizations have registered for the field study?
The FASB is in the process of conducting a field study to test public, private, and not-for-profit organizations' abilities to exercise discretion over which disclosures they provide in notes to financial statements, the FASB stated on the Disclosure Framework project page on its website, which was updated October 10.
You may like these other stories...
IRS must take oath on Lerner emails: judgeMackenzie Weinger of Politico reported on Thursday that a federal judge ordered the IRS to explain under oath how it lost emails connected to Lois Lerner, the ex-IRS official at the...
Credit Suisse says pension assets at risk unless court delays sentencingJohn Letzing of the Wall Street Journal reported on Wednesday that Credit Suisse Group AG says its management of billions of dollars in assets for...
The prospect of International Financial Reporting Standards (IFRS) being fully adopted in the United States in the near future are growing less likely, as the Financial Accounting Standards Board (FASB) and the International...
Upcoming CPE Webinars
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
FRF for SMEs Series--Statement of Cash Flows, Subsequent Events, Related Party Issues, Accounting for Investments including Consolidations, Part 4A
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.