FASB Proposes Elements of Financial Statements

The FASB has issued proposed Statement of Financial Accounting Concepts, Concepts Statement No. 8, Conceptual Framework for Financial Reporting — Chapter 4, Elements of Financial Statements. The proposal clarifies and defines 10 elements of financial statements:

• Assets.
• Liabilities.
• Equity (net assets).
• Revenues.
• Expenses.
• Gains.
• Loses.
• Investment by owners.
• Distributions to owners.
• Comprehensive income.

Comments on the proposal are due by November 13, 2020. For more information, see the press release and FASB in Focus on the FASB’s Web site.