Updates to FASB's Financial Reporting Framework
On December 22, 2021, FASB released two updated chapters in Statement of Financial Accounting Concepts No. 8, Conceptual Framework for Financial Reporting. One chapter updates several of the 10 elements of financial statements primarily by eliminating terminology that makes the terms challenging to understand or apply. The other chapter addresses the factors FASB should consider when deciding how items should be displayed in business or not-for-profit group financial statements. This article provides details on the updates.