As the Financial Accounting Standards Board heads towards completion (hopefully) of its projects on revenue recognition, leases, and financial instruments, another project entitled “Disclosure Framework,” might have slipped under the radar.
It’s understandable if not everyone is following this project—it is in its early stages, and it won’t affect the numbers in the core financial statements, since it is focused only on footnote disclosures. But don’t ignore it for long. If completed, it would fix a glaring hole in FASB’s conceptual framework, by explaining the principles that should guide decisions about what footnote disclosures to include. This project could significantly affect the amount of work it takes to prepare financial reports, and timely input from constituents just might help the project live up to its potential.
