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.

Journal entry — FASB decides to draft proposed amendments to chapter 3 of Concepts Statement 8 and proposed ASU on ASC 235

Published on: Aug 03, 2015

At its meeting last week, the FASB discussed external review comments received on the following forthcoming Board proposals:

  • Proposed amendments to Chapter 3, Qualitative Characteristics of Useful Financial Information, of FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting (“Chapter 3 of Concepts Statement 8”).
  • A proposed Accounting Standards Update (ASU) on ASC 235.1

The Board decided to state in both its proposed amendments to Chapter 3 of Concepts Statement 8 and the proposed ASU that materiality is a legal concept. In addition, it decided to include in its proposed amendments to Chapter 3 of Concepts Statement 8 “[i]nformation on how a legal concept is established and may be changed (including references to legislative, executive, or judicial action)” and a “summary of the current definition of materiality.”

The Board directed its staff to draft both the proposed amendments to Chapter 3 of Concepts Statement 8 and the proposed ASU on ASC 235 for vote by written ballot, with a comment period of 75 days.

____________________

1 FASB Accounting Standards Codification Topic 235, Notes to Financial Statements.

FASB decides to draft proposed amendments to chapter 3 of Concepts Statement 8 and proposed ASU on ASC 235 Image

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.