The Financial Accounting Standards Board (FASB) is gearing up to take a more comprehensive look at footnotes in an effort to make them more effective. The first step is an Invitation to Comment (ITC) that could lead to a number of important outputs, including:
- A conceptual framework to help the Board focus on the disclosures that are most important to users of financial statements,
- Implementation guidance to provide companies with more flexibility to decide which disclosures are needed under different circumstances and at different times, and
- General guidance to help companies organize the footnotes so users can more easily find the information of the most interest to them.
Our latest MHM Messenger discusses the ITC and open questions for private and public companies and not-for-profit organizations. Read the full issue on our website»
The comment period is open until November 16, 2012.
If you would like additional information about the disclosure framework, or if you have any specific questions, comments or concerns about the goals and techniques under consideration, please contact Keith Peterka of MHM’s Professional Standards Group or your MHM service professional. Additional details about the project are also available on the FASB’s website.