The Financial Accounting Standards Board is giving more time to people to comment on its proposals for clarifying financial statement disclosures as a result of Hurricane Sandy.

Leslie Seidman

The new deadline for providing feedback on FASB’s “Invitation to Comment, Disclosure Framework” has been pushed until Nov. 30, 2012. The paper asks for input on ways to improve the effectiveness of disclosures in notes to financial statements of public, private and not-for-profit organizations.  The original deadline was Nov. 16.

“We realize that a substantial number of our stakeholders were affected by Hurricane Sandy and may have difficulty meeting the original deadline,” said FASB chairman Leslie F. Seidman in a statement. “These stakeholders are encouraged to submit their written comments as soon as possible, but no later than Nov. 30, 2012.”

FASB had issued the paper on the disclosure framework in July (see FASB Asks for Feedback on Disclosure Framework). The document addresses topics such as a decision process that could help FASB establish disclosure requirements that address relevant information and only relevant information. It also provides flexible disclosure requirements that could be adapted by each reporting organization to focus on information that is relevant in its specific circumstances. A judgment framework could help each reporting organization determine which disclosures are relevant in its specific circumstances.

The document asks for feedback on organization and formatting techniques that could make the information that users need easier to find and understand. The document also discusses disclosure requirements for interim-period financial statements.

The paper does not propose any specific changes but instead suggests a number of possibilities that FASB believes could lead to more effective disclosures by reporting organizations. FASB believes that establishing a framework for disclosure is an important first step before any specific changes to existing disclosure requirements are considered.

Stakeholders can submit a letter detailing their comments via email to director@fasb.org, File Reference No. 2012-220. Those without email should send a letter to “Technical Director, File Reference No. 2012-220, FASB, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116.”

The Invitation to Comment, and additional project information, is available at www.fasb.org.