The Financial Accounting Standards Board issued Thursday a proposed new chapter of its Conceptual Framework related to the measurement of items recognized in financial statements.
Stakeholders are invited to review and provide comment on the proposed chapter to the framework, which is a body of interrelated objectives and fundamentals that provides the FASB with useful guidelines as it sets standards, by March 20, 2024.
If finalized by the board, the proposed chapter would become Chapter 6 of FASB Concepts Statement No. 8, "Conceptual Framework for Financial Reporting," and would represent the completion of the board's Conceptual Framework.
The chapter, like the rest of the framework, establishes concepts that the board considers in developing standards of financial accounting and reporting, and would provide the board with a framework for developing standards that meet the objective of financial reporting and enhance the understandability of information.
Financial accounting concept statements are nonauthoritative and do not establish or change generally accepted accounting principles.
The proposed chapter,
- Two relevant and representationally faithful measurement systems: the entry price system and the exit price system; and,
- Considerations when selecting a measurement system.
