Cahill Gordon discusses FASB’s Recent Exposure Drafts on Determinations of Materiality

The Financial Accounting Standards Board (the “Board”) recently issued two exposure drafts that recommend a series of amendments related to determinations of materiality.1 These efforts form part of the Board’s ongoing disclosure framework project, an initiative dedicated to improving the quality and effectiveness of disclosures in the notes to financial statements.2

Fundamental to this objective are (1) the development of a framework that enables a clear and consistent understanding of disclosure requirements and (2) the appropriate exercise of discretion by reporting entities in deciding which information to communicate to investors.3 Towards these ends, the Board has proposed … Read more