Project Update

Disclosure Framework: Disclosures—Interim Reporting

Last updated on January 12, 2017. 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.

Additionally, the FASB will host a public roundtable meeting on the Board’s decision process under the disclosure framework and on materiality in Norwalk, Connecticut on March 17, 2017. The roundtable meeting is an important part of the Board’s due process on the Exposure Drafts. The first session of the roundtable will be an opportunity for those who have submitted a comment letter on the Exposure Draft of Chapter 8 or any of the four Topical reviews (defined benefit plans, fair value measurement, income taxes, and inventory) to discuss with the FASB the effects of the proposed concepts on disclosures. The second session is an opportunity for those who have submitted a comment letter on either materiality Exposure Draft (Chapter 3 or proposed Update on Topic 235) to discuss their feedback with the FASB.

To ensure that a variety of perspectives is received, the Board is seeking participation from preparers, auditors, investors, and others. Those who desire to participate in one of the roundtable sessions should notify the FASB by submitting an online participation form by February 27, 2017. The roundtable meeting can accommodate a limited number of participants. Depending on the number of responses received, the Board may not be able to accommodate all requests to participate.

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
ntcappiello@fasb.org

Jaime Dordik
Assistant Project Manager
jadordik@fasb.org