This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

FASB proposes decision process improvements for disclosure framework

  • FASB (US Financial Accounting Standards Board) Image

Mar 05, 2014

The FASB has issued an exposure draft (ED) proposing a decision process to be used by the Board and its staff for evaluating what disclosures should be required in notes to interim and annual financial statements. Also, it proposes the types of information that should not be required in notes to financial statement.

Under the ED, the following three types of information may appear in notes to financial statements and should not be provided on the face of the financial statements alone:

  • Information about specific line items.
  • General information about the nature of the entity, its activities, any special restrictions or privileges that apply to it, and other advantages and disadvantages relative to other entities.
  • Information about past events and current circumstances and conditions that will or may affect future cash flows but have not affected a line item.

Types of information that should not be required in the notes include:

  • Information that is relevant to providers of resources to a significant number of entities.
  • Information whose disclosure is subject to cost constraints.
  • Certain future-oriented information (e.g., predictions of outcomes that are outside the control of the entity), except for the following information that may be important:
    • Estimates and assumptions used as inputs to measurements.
    • Existing plans and strategies related to matters under management’s control.
    • The effect of specified future changes in existing conditions on specific line items or on the entity as a whole.

If approved, the ED will become a new chapter in Concepts Statement No. 8, Conceptual Framework for Financial Reporting.

The comment deadline is July 14, 2014.

For more information, see:

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.