The Financial Accounting Standards Board is proposing a new chapter of its Conceptual Framework, on "The Reporting Entity."
The board is particularly interested in feedback on its description of the characteristics of a reporting entity: "A circumscribed area of economic activities that can be represented by general purpose financial reports that are useful to existing and potential investors, lenders, and other resource providers in making decisions about providing resources to the entity."
FASB's current Conceptual Framework, which it began work on in 2014, is not considered authoritative and does not override any other accounting standards. Instead, the framework is meant to establish concepts that the board can use to develop authoritative standards.
The
