Project Update

Disclosure Framework—Interim Reporting

Last updated on January 16, 2015. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.

(Updated sections are indicated with an asterisk *)

The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.

Project Objective and Overview
*Decisions Reached at Last Meeting
*Tentative Board Decisions Reached to Date
Next Steps
*Board/Other Public Meeting Dates
*Contact Information

Project Objective and Overview

The objective and primary focus of the Disclosure Framework project is to improve the effectiveness of disclosures in notes to financial statements by clearly communicating the information that is most important to users of each entity’s financial statements. Achieving the objective of improving effectiveness will require development of a framework that promotes consistent decisions about disclosure requirements by the Board and the appropriate exercise of discretion by reporting entities .

The objective of improving effectiveness will require development of a framework that promotes consistent decisions about disclosure requirements by the Board and the appropriate exercise of discretion by reporting entities. To achieve this objective, the Disclosure Framework project comprises two components: the Board’s Decision Process and the Entity’s Decision Process.

Currently four sets of disclosure requirements are being reviewed as part of the Disclosure Framework project. The Board’s decision process and the entity’s decision process are being used together to modify the disclosure sections in the following Topics:
  1. Fair Value Measurement (820-10-50)
  2. Defined Benefit Plans (715-20-50)
  3. Income Taxes (740-10-50)
  4. Inventory (330-10-50)
The intention is that the current requirements are improved through the consideration of the concepts in the Board’s decision process as well as the promotion of discretion.

Additionally, disclosure requirements for interim reporting are being evaluated for modification. This page contains information pertinent to the Disclosure Framework project efforts on interim reporting.

The FASB staff has developed a “Q&A: FASB’s Disclosure Framework Project” fact sheet which can be viewed here.

*Decisions Reached at Last Meeting (January 7, 2015)

The Board continued redeliberations of the March 4, 2014 proposed FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, focusing on interim reporting. As a next step in its redeliberations, the Board directed the staff to analyze how the proposed Concepts Statement would affect existing interim disclosures related to fair value measurement and revenue recognition in Topic 270.

*Tentative Board Decisions Reached to Date (as of January 7, 2015)

See Decisions Reached at Last Meeting.

The Board decided to amend Topic 270, Interim Reporting, to reflect that disclosures about matters required to be set forth in annual financial statements should be provided on an updated basis in the interim report if there is a substantial likelihood that the updated information would be viewed by a reasonable investor as significantly altering the “total mix” of information available to the investor.

Next Steps

At a future meeting, the Board will discuss a staff analysis of disclosure requirements that should be included in Topic 270 that considers the feedback received on the recently issued Exposure Draft, Conceptual Framework for Financial Reporting: Chapter 8 Notes to Financial Statements.

*Board/Other Public Meeting Dates

The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.

*January 7, 2015 Board Meeting—Disclosure Framework—Interim Reporting
May 28, 2014 Board Meeting—Disclosure Framework—Interim Disclosures

*Contact Information

Nick Cappiello
Project Manager

Jaime Dordik
Assistant Project Manager

Kelsey Jensen
Postgraduate Technical Assistant

Kristin Floyd
Postgraduate Technical Assistant