Project Update

Disclosure Framework: Disclosures—Interim Reporting

Last updated on October 10, 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.

To achieve that 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 (Section 820-10-50)
  2. Defined Benefit Plans (Section 715-20-50)
  3. Income Taxes (Section 740-10-50)
  4. Inventory (Section 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, Interim Reporting.

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

See Decisions Reached at Last Meeting.

The Board decided to amend Topic 270 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 proposed FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8 Notes to Financial Statements.

Additionally, on June 6, 2017, the Board will meet with its Investor Advisory Committee to discuss the disclosure framework project. After that meeting, the staff will develop and present a plan for redeliberations.

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

Kelly Coyne
Postgraduate Technical Assistant

Haoran Jiang
Postgraduate Technical Assistant