Mon, Oct 28, 2013
Washington, District Of Columbia
Questions, answers and clarifications regarding the Financial Accounting Standards Board's (FASB) Disclosure Framework project are provided in a new document released by that agency.
FASB's ongoing disclosure project is a bid to create disclosures that clearly communicate vital information to users of financial statements released by public firms, private companies and not-for-profit organizations. As the project moves forward, FASB is focused on two items: Its own decision-making process, and the decision-making processes of firms producing financial statements.
In one response, FASB said the objective of the disclosure framework project is to improve the effectiveness of disclosures in notes to financial statements, not necessarily to reduce the volume of notes. "By clearly communicating the information that is most important to users of reporting organizations' financial statements, the disclosure framework project aims to make disclosure requirements more effective and useful," the board said.
Other questions answered in the FASB document include:
- Will FASB's decision process require preparers to disclose predictions and forecasts of future cash flows?
- Will disclosure overlap between U.S. Generally Accepted Accounting Principles, Securities and Exchange Commission rules, and other regulatory requirements be eliminated?
- Will FASB's decision process address interim reporting?
- How are investor concerns being taking into account in the project?; and
- How does the disclosure framework project relate to private companies?
Click for the full disclosure document, FASB Document.
Source: CUNA News Now