Last updated on July 19, 2023. 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 *)
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.
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:
- Reported amounts of assets and liabilities should be recoverable or settleable, respectively.
- Measurement should be anchored in prices, and transactions and other events and circumstances affecting the entity should ultimately be measured in prices.
- Entry and exit price systems are the only relevant measurement systems.
- Cash flow estimations may be relevant measures when approximating an entry or exit price.
- Systematic allocations of accumulated cost do not necessarily result in an entry or exit price.
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 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|
Senior Project Manager
Post Doctoral Fellow
Postgraduate Technical Assistant
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.