The FASB has officially issued the final chapter of its Conceptual Framework, which focuses on measuring items in financial statements.
This new chapter, known as Chapter 6, integrates into FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting, rounding off the board's foundational framework for financial reporting.
The framework serves as a nonauthoritative guide that aids the FASB in creating standards that fulfill the objective of financial reporting and enhance clarity for stakeholders, including investors, lenders and donors.
The new chapter provides concepts for the board to consider when choosing a measurement system for an asset or a liability recognized in general-purpose financial statements. Learn more.