WASHINGTON (10/11/13)--Questions, answers and clarifications regarding the Financial Accounting Standards Board's (FASB) Disclosure Framework project are provided in a new document released by that agency.
FASB's ongoing disclosure project is a bid to create disclosures that clearly communicate vital information to users of financial statements released by public firms, private companies and not-for-profit organizations. As the project moves forward, FASB is focused on two items: Its own decision-making process, and the decision-making processes of firms producing financial statements.
In one response, FASB said the objective of the disclosure framework project is to improve the effectiveness of disclosures in notes to financial statements, not necessarily to reduce the volume of notes. "By clearly communicating the information that is most important to users of reporting organizations' financial statements, the disclosure framework project aims to make disclosure requirements more effective and useful," the board said.
Other questions answered in the FASB document include:
For the full disclosure document, use the resource link.
The Credit Union National Association has repeatedly urged FASB to understand the unique nature of credit unions, which are member-owned, not-for-profit financial cooperatives, as it develops the framework and works on other accounting changes.