The FASB issued the Invitation to Comment, Disclosure Framework, to ask for stakeholder input on ways to improve effectiveness of disclosures in notes to financial statements of public, private and not-for-profit organisations. The Discussion Paper is open for comment until November 16, 2012.
The Invitation to Comment is the FASB’s first step in soliciting broad input on ways to improve disclosure effectiveness. The Invitation to Comment addresses the following topics:
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a decision process that could aid the Board in establishing disclosure requirements that address relevant information and only relevant information;
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flexible disclosure requirements that could be adapted by each reporting organisation to focus on information that is relevant in its specific circumstances;
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a judgement framework that could help each reporting organisation determine which disclosures are relevant in its specific circumstances;
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organisation and formatting techniques that could make the information users need easier to find and understand.
The document also discusses disclosure requirements for interim period financial statements.
The paper does not propose any specific changes but rather suggests a number of possibilities that the Board believes could lead to more effective disclosures by reporting organisations. The Board believes that establishing a framework for disclosure is an important first step before any specific changes to existing disclosure requirements are considered.
When the framework has reached a sufficient level of development, the Board plans to apply that framework to existing standards. Applying the framework to existing standards could eventually result in modifying existing requirements or establishing new ones; any such changes would be exposed for public comment.
Press release
© FASB
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