FASB Discusses Project on Conceptual Framework — Elements

At its April 21, 2021, meeting the FASB discussed feedback on its proposed Statement of Financial Accounting Concepts, Concepts Statement No. 8 — Conceptual Framework for Financial Reporting — Chapter 4: Elements of Financial Statements.

The Board tentatively decided the following: (1) to “remove the terms probable and future and the phrase past transactions or events” from the current definition of “asset,” (2) to add language to “help with identifying whether internally generated intangible items meet the definition of an asset,” and (3) that “[d]etermining when research and development activities qualify as an asset is a standards-level decision.”

The Board will discuss additional feedback related to proposed Chapter 4 of Concepts Statement 8 at a future meeting.