PwC comments on the FASB's Conceptual Framework exposure draft on notes to financial statements

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PwC comment letter (FASB) 07/11/2014 by Assurance services
PwC comments on the FASB's  Conceptual Framework exposure draft on notes to financial statements

At a glance

PwC broadly supports the Disclosure Framework project, but suggests areas for further refinement.

PwC submitted comments on the FASB’s exposure draft of the Conceptual Framework for Financial Reporting: Notes to Financial Statements (the “Proposal”). The Proposal is intended to make financial statement disclosures more effective and less redundant. It details a framework to be used by the Board in its standard-setting activities for determining what information is relevant to the users of financial statements and should be included in the notes. The Notes Framework will not only be used as a basis for establishing future disclosure requirements, but can be used to evaluate existing disclosures.

The exposure draft focuses on:

  • The types of information to include in notes to financial statements
  • Limitations on information in notes to financial statements
  • Additional considerations for interim period disclosures

We provided comments noting that we are broadly in support of the Disclosure Framework project as well as areas where the exposure draft could be further refined. Key themes of our response include:

  • Boundary for disclosures
  • Preparer flexibility
  • Consideration of existing disclosure requirements