FASB Issues New and Final Chapter of Its Conceptual Framework: Measurement
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July 12, 2024 The Financial Accounting Standards Board (FASB) today a new chapter of its Conceptual Framework related to the measurement of items recognized in financial statements. The Conceptual Framework is a body of interrelated objectives and fundamentals that provides the FASB with a useful tool as it sets standards. A Statement of Financial Accounting Concepts is nonauthoritative and does not establish or change Generally Accepted Accounting Principles. The new chapter becomes Chapter 6 of FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting, and represents the completion of the FASB’s Conceptual Framework. “The publication of Chapter 6 completes the FASB’s Conceptual Framework—an important tool used by the Board in our decisions,” stated FASB Chair Richard R. Jones. “We thank the FASB members, staff, and stakeholders whose input helped us achieve this milestone, one that’s been several decades in the making.” The new chapter is similar to the rest of the framework in that it establishes concepts that the Board would consider in developing standards of financial accounting and reporting. It provides the Board with a framework for developing standards that meet the objective of financial reporting and enhance the understandability of information for existing and potential investors, lenders, donors, and other resource providers of a reporting entity. The new chapter provides concepts for the Board to consider when choosing a measurement system for an asset or a liability recognized in general purpose financial statements. It describes: Two relevant and representationally faithful measurement systems: To find out more details please visit : https://www.fasb.org/ |