Conceptual Framework: Recognition and Derecognition

Last updated on November 22, 2022. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.

(Sections updated on the date above are indicated with an asterisk *)



The objective of the conceptual framework project is to develop an improved conceptual framework that provides a sound foundation for developing future accounting standards. Such a framework is essential to fulfilling the Board’s goal of developing standards that are principles based, internally consistent, and that lead to financial reporting that provides the information capital providers need to make decisions in their capacity as capital providers. The new FASB framework will build on the existing framework.


Recognition concepts are currently set forth in FASB Concepts Statement No.5, Recognition and Measurement in Financial Statements of Business Enterprises. The Board concluded that the discussion of recognition could be further developed and improved with the objective of providing a foundation for future standards for business and not-for-profit entities. Concepts Statement 5 did not explicitly address the issue of derecognition. The Board decided to develop concepts to address this deficiency.

Exposure Draft:

On November 22, 2022, the Board issued proposed FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting—Chapter 5: Recognition and Derecognition. The comment letter deadline is February 21, 2023.
  • Download the proposed Concepts Statement Chapter.

  • Read the press release on the proposed Concepts Statement Chapter.

Decisions Reached at Last Meeting

See meeting minutes.

Tentative Board Decisions:

See proposed Concepts Statement Chapter.

The Board meeting minutes, handouts, and videos are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.

The following are links to the minutes for each meeting.  To view Board meetings and handouts from the past 90 days, click here.
July 20, 2022 Board Meeting—The Board decided on a comment period for the proposed Chapter.The Board began initial deliberations on the recognition and derecognition phase of the Conceptual Framework project and decided on a comment period for the proposed Chapter.

The comment letter deadline for the proposed Concepts Statement Chapter is February 21, 2023.

Jill Switter
Senior Project Manager

Jim Leisenring
Senior Advisor

Cassie Mongold
Post-Doctoral Fellow

Dylan Ehrnst
Postgraduate Technical Assistant

Charley Heyd
Postgraduate Technical Assistant

The staff has prepared this summary for information purposes only. Any Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.