Tentative Board Decisions
Tentative Board decisions are provided for those interested in following
the Board’s deliberations. All of the reported decisions are tentative and may
be changed at future Board meetings.
Wednesday, November 8,
2017 FASB Board Meeting
Disclosure
framework—entity’s decision process. The Board discussed issues related to
the definition of materiality in the FASB Conceptual Framework and Topic 235,
Notes to Financial Statements.
The Board decided to:
1. Amend the
current definition of materiality in Chapter 3, Qualitative Characteristics
of Useful Financial Information, of FASB Concepts Statement No. 8,
Conceptual Framework for Financial Reporting, with language similar to
that of the definition in FASB Concepts Statement No. 2, Qualitative
Characteristics of Accounting Information (superseded).
2. Remove
the reference to materiality as a legal concept in Concepts Statement 8 and in
Topic 235.
The Board also decided not to add language to Concepts
Statement 8 that indicates that the definition of materiality may
change.
Next Steps
The staff will draft Chapter 3 and
Chapter 8, Notes to Financial Statements, of Concepts Statement 8.
The Board will continue to redeliberate materiality in the context of
the FASB Accounting Standards Codification®.