On July 12, 2012, the FASB (the "Board") issued a Discussion Paper — Invitation to Comment on Disclosure Framework. In the Discussion Paper (the "DP"), the Board is seeking stakeholder feedback on twenty-two questions designed to identify information that should be disclosed in notes to the financial statements ("Notes") to make them more relevant, flexible, and better organized.
The Board has had a disclosure framework project on its agenda since July 2009. The objective of the project is to make financial statement footnote disclosures more effective by focusing on information that is most important. The Board believes this will also reduce the volume of disclosures, although this is not the primary objective. The FASB is exploring alternatives for decision-making frameworks that would promote consistent decisions by the Board about required disclosures and appropriate exercise of judgment by reporting entities when determining their disclosures. The Board has indicated that it would welcome suggested alternatives supported by specific reasoning. Comments on the DP are due November 16, 2012.
This Dataline takes a look at the topics on which the FASB is requesting comments and offers our observations.