FASB Proposes New Conceptual Framework Chapter

The FASB has released a proposed chapter, “Recognition and Derecognition” (Chapter 5), of Concepts Statement No. 8, Conceptual Framework for Financial Reporting. The proposed chapter would establish a framework for developing standards on the basis of “recognition and derecognition criteria and guidance on when an item should be incorporated into and removed from financial statements.”

Comments on the proposal are due by February 21, 2023. For more information, see the press release on the FASB’s Web site.