FASB completes conceptual framework with new chapter on measurement

Posted on July 20, 2024 by Editor

Earlier this month the Financial Accounting Standards Board (FASB) issued the final chapter of its Conceptual Framework. This new chapter focuses on the measurement of items in financial statements, enhancing the toolset available to the FASB for setting standards.

This newly published chapter, Chapter 6 of FASB Concepts Statement No. 8, enriches the Conceptual Framework with guidance on selecting appropriate measurement systems for assets and liabilities in general-purpose financial statements. This guidance will support the FASB in its objective to produce standards that meet the needs of investors, lenders, donors, and other resource providers.

FASB Chair Richard R. Jones acknowledged the decades-long effort behind this completion, highlighting the collaborative input from FASB members, staff, and stakeholders. The completion of this framework aims to ensure that future developments are grounded in a robust, well-considered foundation of clear and consistent reporting principles.

For more detailed information, you can read the full chapter on the FASB website here.