Today, the FASB issued a discussion paper (DP) to obtain stakeholder input on its development of a framework intended to make the financial statement disclosures of public, private, and not-for-profit organizations “more effective, coordinated and less redundant.” The DP is, according to the Board’s news release, “the FASB’s first step in soliciting broad input on ways to improve disclosure effectiveness.” Some of the ideas covered in the DP, if implemented, could significantly change the Board’s process for creating disclosure requirements in future standards and potentially alter those in existing standards (as well as how preparers apply them).

In the news release, FASB Chairman Leslie F. Seidman is quoted as stating:

Many stakeholders have expressed concerns about the relevance and sheer volume of information in notes to financial statements, and that some information is either missing or difficult to find. Therefore, the FASB is looking to improve its own procedures for establishing disclosure requirements and to provide a way for reporting organizations to exercise judgment about which disclosures are relevant to them. The ultimate goal is to enhance users’ abilities to analyze the information in the notes to financial statements while minimizing the burden on reporting organizations.

Comments on the DP are due by November 16, 2012. For additional information, watch for Deloitte’s forthcoming Heads Up on the DP.

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