The Monetary Accounting Requirements Board has added two new chapter to its Conceptual Framework.
Issued as “idea statements,” the chapters cowl the weather of economic statements, and their presentation.
Richard Jones
“The brand new chapters of the Conceptual Framework tackle two vital areas of economic reporting: monetary assertion parts and presentation,” mentioned FASB Chair Richard Jones, in an announcement. “They improve our Conceptual Framework, which is a software for the board to make use of in setting requirements that enhance the understandability of knowledge entities present to present and potential buyers, lenders, donors, and different useful resource suppliers.”
First, FASB Ideas Assertion No. 8, Conceptual Framework for Monetary Reporting — Chapter 4, “Components of Monetary Statements,” defines the monetary assertion parts to be utilized in creating accounting requirements. The brand new chapter supersedes Ideas Assertion No. 6, “Components of Monetary Statements.”
Second,FASB Ideas Assertion No. 8, Conceptual Framework for Monetary Reporting — Chapter 7, “Presentation,” lays out the components the board ought to contemplate when deciding how objects must be displayed in monetary statements. The brand new chapter supersedes parts of Ideas Assertion No. 5, “Recognition and Measurement in Monetary Statements of Enterprise Enterprises.”
The Conceptual Framework represents the fundamental targets and fundamentals round which FASB develops requirements. Idea statements are non-authoritative, and don’t set up or change present accounting requirements.