Addressing Investor Needs through Application of the Updated Conceptual Framework in FASB Standard Setting
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12 August 2024 The Financial Accounting Standards Board (“FASB” or the “Board”) completed a comprehensive update to its Conceptual Framework for Financial Reporting (“Conceptual Framework”). Now that it has finalized this significant project, it is important that the Board actively consider the objectives and fundamentals in the updated Conceptual Framework throughout all of its standard-setting activities, to guide the Board in developing improved accounting principles to enhance the accuracy and effectiveness of financial reporting and the protection of investors in the public interest. The Conceptual Framework is a body of interrelated objectives and fundamental concepts that provides guidance on the nature, function, elements, measurement approaches, and disclosure objectives of financial accounting and reporting. The FASB issued its first financial reporting concepts statement in 1978 and subsequently issued a total of seven concept statements through 2000. In 2014, in response to stakeholder feedback, the FASB decided to more comprehensively revisit its Conceptual Framework to provide a sound foundation for developing future accounting standards. The issuance of Chapter 6, Measurement, of Concepts Statement No. 8 on July 12, 2024, represents the culmination of that project by Board members and FASB staff. Now that the updates to the Conceptual Framework are complete, it is important that the Board use it to guide its agenda-setting process and standard-setting deliberations, including to assist Board members in asking the right questions and objectively evaluating whether their views are consistent with the principles laid out in the Conceptual Framework. To find out more details please visit : https://www.sec.gov/ |