Norwalk, CT, December 22, 2021—The Financial Accounting Standards Board (FASB) today issued two new chapters of its Conceptual Framework. The Conceptual Framework is a body of interrelated objectives and fundamentals that provides the FASB with a foundation for setting standards and concepts for it to use as tools for resolving accounting and reporting questions. A Statement of Financial Accounting Concepts is nonauthoritative and does not establish or change generally accepted accounting standards. Show
“The new chapters of the FASB’s Conceptual Framework address two important areas of financial reporting: financial statement elements and presentation,” stated FASB Chair Richard R. Jones. “They enhance our Conceptual Framework, which is a tool for the Board to use in setting standards that improve the understandability of information entities provide to existing and potential investors, lenders, donors, and other resource providers.” FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting—Chapter 4, Elements of Financial Statements, defines elements of financial statements to be applied in developing standards for both businesses and not-for-profit entities. These elements provide a foundation for information that is relevant to the objective of financial reporting—namely, to provide financial information about the reporting entity that is useful to existing and potential investors, lenders, and other creditors in making decisions about providing resources to the entity. Chapter 4 supersedes Concepts Statement No. 6, Elements of Financial Statements. FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting—Chapter 7, Presentation, identifies factors for the Board to consider when deciding how items should be displayed on the financial statements. The Board will assign priority to the factors based on the item being evaluated for presentation purposes. The priority of the factors would be determined in the context of best meeting the objective of financial reporting. Chapter 7 supersedes portions of Concepts Statement No. 5, Recognition and Measurement in Financial Statements of Business Enterprises. The new chapters are available on the FASB website. The FASB Concepts Statements are intended to serve the public interest by setting the objectives, qualitative characteristics, and other concepts that guide selection of economic phenomena to be recognized and measured for financial reporting and their display in financial statements or related means of communicating information to those who are interested. Concepts Statements guide the Board in developing sound accounting principles and provide the Board and its constituents with an understanding of the appropriate content and inherent limitations of financial reporting. A Statement of Financial Accounting Concepts does not establish generally accepted accounting standards. YOU MUST USE Adobe® Acrobat® Reader® VERSION 5.0 OR HIGHER TO VIEW THE FULL TEXT OF FASB DOCUMENTS BELOW. NOTES ABOUT USING FASB STATEMENTS OF FINANCIAL ACCOUNTING CONCEPTSAccess to FASB Statements of Financial Accounting Concepts (Concepts Statements) as posted at this website is permitted only through each of the individual links. You may not store the Concepts Statements on your computer or in any archival system. If you provide a link to the Concepts Statements, you may not link to the individual Concepts Statements—you must link to this page, so that visitors may understand the requirements and conditions for use of the Concepts Statements as posted at this website. Concepts Statements available at this website may be used only for individual personal non-commercial purposes—you may print one copy for such use. COPYRIGHT NOTICECopyright © by Financial Accounting Foundation. All rights reserved. Content copyrighted by Financial Accounting Foundation may not be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the Financial Accounting Foundation. Concepts Statement No. 8 Concepts Statement No. 8 Concepts Statement No. 8 Concepts Statement No. 8 Concepts Statement No. 8 Concepts Statement No. 7 Concepts Statement No. 5 Superseded Concepts Statements: Concepts Statement No. 1 (Superseded) Concepts Statement No. 2 (Superseded) Concepts Statement No. 3 (Superseded) Concepts Statement No. 4 (Superseded)
Concepts Statement No. 6 (Superseded) What is FASB Statement of Financial Accounting Concepts?The Statement of Financial Accounting Concepts (SFAC) was a document issued by the Financial Accounting Standards Board (FASB) covering broad financial reporting concepts. FASB is the organization that sets down the accounting rules and guidelines that make up Generally Accepted Accounting Principles (GAAP).
What are the elements of financial statements according to FASB?The FASB's Exposure Draft
The chapter defines 10 elements of financial statements: assets, liabilities, equity (net assets), revenues, expenses, gains, losses, investments by owners, distributions to owners, and comprehensive income.
Which of the following characteristics is considered by the FASB conceptual framework to enhance the usefulness of relevant faithfully represented financial information?Verifiability is a characteristic that enhances the usefulness of information that is both relevant and faithfully represented.
How many FASB statements are there?There were 168 standards. The FASB Accounting Standards Codification replaced SFAS.
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Which of the following is not defined in FASB Statement of Financial Accounting Concepts Number 7
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