Tentative Board Decisions
Tentative Board decisions are provided for those interested in following the Board’s deliberations. All of the reported decisions are tentative and may be changed at future Board meetings.
Disclosure framework—entity’s decision process. The Board discussed issues related to the definition of materiality in the FASB Conceptual Framework and Topic 235, Notes to Financial Statements.
The Board decided to:
1. Amend the current definition of materiality in Chapter 3, Qualitative Characteristics of Useful Financial Information, of FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting, with language similar to that of the definition in FASB Concepts Statement No. 2, Qualitative Characteristics of Accounting Information (superseded).
2. Remove the reference to materiality as a legal concept in Concepts Statement 8 and in Topic 235.
The Board also decided not to add language to Concepts Statement 8 that indicates that the definition of materiality may change.
The staff will draft Chapter 3 and Chapter 8, Notes to Financial Statements, of Concepts Statement 8.
The Board will continue to redeliberate materiality in the context of the FASB Accounting Standards Codification®.