Objective:

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.
 

Background:

There are no materials or documents for this section at this time.

Exposure Draft:

There are no exposure documents at this time.

There are no materials or documents for this section at this time.

Decisions Reached at Last Meeting (May 17, 2023):

The Board continued initial deliberations on FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting—Chapter 6, Measurement. The Board decided on the following underlying concepts as the foundation for the chapter:

1. Reported amounts of assets and liabilities should be recoverable or settleable, respectively.
2. Measurement should be anchored in prices, and transactions and other events and circumstances affecting the entity should ultimately be measured in prices.
3. Entry and exit price systems are the only relevant measurement systems.
4. Cash flow estimations may be relevant measures when approximating an entry or exit price.
5. Systematic allocations of accumulated cost do not necessarily result in an entry or exit price.

The Board discussed the completeness and accuracy of the “Choosing between the Relevant Measurement Systems” section of the staff draft and provided the staff with feedback.

The Board directed the staff to incorporate Board members’ feedback in the draft chapter, develop the basis for conclusions for the chapter, and consider whether elements of FASB Concepts Statement No. 7, Using Cash Flow Information and Present Value in Accounting Measurements, should be incorporated in the forthcoming measurement chapter. The Board will continue deliberations at a future Board meeting.

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 .
 

May 17, 2023	Board Meeting—The Board continued initial deliberations on the measurement phase of the Conceptual Framework project. The Board directed the staff to incorporate Board members’ feedback in the draft chapter, develop the basis for conclusions for the chapter, and consider whether elements of FASB Concepts Statement No. 7, Using Cash Flow Information and Present Value in Accounting Measurements, should be incorporated in the forthcoming measurement chapter. The Board will continue deliberations at a future Board meeting.
October 13, 2021	Board Meeting—The Board discussed the staff’s approach on developing a proposed Chapter 6 on measurement for FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting . The Board discussed the content and level of specificity contained within the chapter. No decisions were made.
November 13, 2019	Board Meeting—The Board provided its views on the issuance of an Invitation to Comment on the measurement chapter of the Conceptual Framework. No Board decisions were made. The chairman directed the staff to begin work on the Invitation to Comment with input from the Board.
June 19, 2019	Board Meeting—The Board discussed an approach for developing a proposed measurement chapter of FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting .
November 30, 2016	Board Meeting—The Board discussed the overall project plan going forward and decided on concepts related to initial measurement and initial carrying amount of assets. The Board directed the staff to develop a revised project plan to address the elements of financial statements concurrently with presentation and measurement concepts.
December 16, 2015	Board Meeting—The Board discussed two alternatives for determining what should be included in initial carrying amount of assets, liabilities, and equity. The Board discussed potential wording for a possible Exposure Draft that would address how the qualitative characteristics of useful financial information apply to determining changes in carrying amounts and which changes in carrying amounts might be appropriate in which circumstances.
November 2, 2015	Board Meeting—The Board discussed how to describe or explain the estimation of market prices and cost-based amounts, the effect on understandability of using different methods of determining carrying amounts, and the relationship of information about management performance to the objective of financial reporting
August 26, 2015	Board Meeting—The Board discussed what might be included in the initial carrying amount of an asset, a liability, or an equity instrument.
July 29, 2015	Board Meeting—The Board discussed market prices for items that are not expected to be sold, estimated market prices, changes in carrying amounts of inventories, how using different methods of determining changes in carrying amounts affects understandability, the reasons for using systematic allocation, and why providing information to assess the performance of management is not an objective of financial reporting.
March 18, 2015	Board Meeting—The Board discussed a concept for determining initial carrying amounts of assets and liabilities. No decisions were reached.
February 18, 2015	Board Meeting—The Board continued its deliberations, discussing different methods of determining carrying amounts and changes in carrying amounts. The Board decided that certain categories of methods should be discussed in the proposed Concepts Statement chapter on measurement.
November 19, 2014	Board Meeting—The Board discussed a process for establishing standards for determining changes in carrying amounts (remeasurements or subsequent measurements).
June 18, 2014	Board Meeting—The Board discussed how to proceed with the conceptual framework project

The Board continued initial deliberations on the measurement phase of the Conceptual Framework project. The Board directed the staff to incorporate Board members’ feedback in the draft chapter, develop the basis for conclusions for the chapter, and consider whether elements of FASB Concepts Statement No. 7, Using Cash Flow Information and Present Value in Accounting Measurements, should be incorporated in the forthcoming measurement chapter. The Board will continue deliberations at a future Board meeting.

Jill Switter
Senior Project Manager
jmswitter@fasb.org

Jim Leisenring
Senior Advisor
jjleisenring@fasb.org

Michael Yip
Post Doctoral Fellow
myip@fasb.org

Emma Little
Postgraduate Technical Assistant
elittle@fasb.org

Caroline Kosmicki
Postgraduate Technical Assistant
ckosmicki@fasb.org