Annual Update for Accountants and Auditors: 2020

Chapter 5FASB Exposure Drafts and Projects

Learning objective

• Recognize ongoing FASB projects.

Introduction

FASB has updated its website to make it easier to track and understand their current technical agenda by categorizing current projects into the following areas:

• Framework
• Recognition and measurement
• Presentation and disclosure

The recognition and measurement and presentation and disclosure areas are considered standard-setting areas. These projects are intended to result in the issuance of an Accounting Standards Update (ASU). FASB uses the following timeline to designate the status of each project:

Framework projects

The objective of the conceptual framework project is to develop an improved conceptual framework that provides a sound foundation for developing future accounting standards. Such a framework is essential to fulfilling the FASB’s goal of developing standards that are principles-based, internally consistent, and that lead to financial reporting that provides the information capital providers need to make decisions in their capacity as capital providers. The new FASB framework will build on the existing framework.

Conceptual framework: Elements

This project was added to the FASB agenda on May 3, 2017. FASB has discussed working definitions of revenues and expenses, which are currently defined in Statement of Financial Accounting Concept (SFAC) No. ...