News Release 08/11/16
FASB PROPOSES CONCEPTS FOR PRESENTING
ITEMS IN A FINANCIAL STATEMENT
Norwalk, CT, August 11, 2016—The Financial Accounting Standards Board (FASB) today issued for public comment an Exposure Draft related to its conceptual framework presentation project. Stakeholders are encouraged to review and comment on the proposal by November 9, 2016.
The Exposure Draft, Conceptual Framework for Financial Reporting: Chapter 7: Presentation, describes proposed concepts related to how recognized items should be presented in a financial statement. This chapter will become a basis for the Board when creating presentation requirements in future standards.
The proposal is designed to provide a foundation for future standards to enhance financial statement users’ abilities to assess prospects for future cash flows by addressing how to:
- Group individual recognized items into line items and subtotals, and
- Clarify the relationships among assets, liabilities, and equity and the effects of related changes of those assets and liabilities on comprehensive income and cash flows.
The proposal is part of the FASB’s larger conceptual framework project, which is also addressing measurement and disclosure concepts.
More information on the Exposure Draft, including a FASB In Focus , is available on the FASB website.
About the Financial Accounting Standards Board
Established in 1973, the FASB is the independent, private-sector, not-for-profit organization based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP). The FASB is recognized by the Securities and Exchange Commission as the designated accounting standard setter for public companies. FASB standards are recognized as authoritative by many other organizations, including state Boards of Accountancy and the American Institute of CPAs (AICPA). The FASB develops and issues financial accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to investors and others who use financial reports. The Financial Accounting Foundation (FAF) supports and oversees the FASB. For more information, visit www.fasb.org.