Disclosure Framework : Board 's Decision Process

2473 Words10 Pages
Mohammed Alhamid
Bruce Bettinghaus
ACC 620
24 October 2014

Disclosure Framework: Board’s Decision Process
1. Introduction
In October 3, 2014 the Financial Accounting Standard Board (FASB) issued proposed updates to the disclosure framework for the board decision process. This disclosure framework is meant to improve the effectiveness of disclosures in notes to financial statements. According to the disclosure framework effectiveness of the financial statements could be achieved by enhancing clarity in communication of information that is most important to users of each entity financial statements. FASB agrees that reduction in volume of the notes to financial statement is note the main objective but also does not refute the fact that concentration on the most important information in note will automatically lead to reduction in the volume of notes to financial statements (Financial Accounting Standards Board, 2014).
According to FASB, to achieve any improvement to the effectiveness will require a framework that supports consistent decision about disclosure requirement by the board. Also the reporting entities will be required to exercise discretion appropriately with the main objective of enhancing effectiveness. In pursuit of this objective FASB came up with a proposed disclosure framework project that comprises of the board decision process and the entity decision processes. The objective of FASB is to improve the
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