How FASB's Change to "Materiality" Could Materially Change 2016
By: Peter Simmons and Amanda Wilson
As we close the books on the first chapter of our 2016 year, many investors cling to their New Year’s resolutions, hoping to make a material change that catalyzes a happy, healthy, and productive New Year. Yet it is a proposed change to “materiality” that the Financial Accounting Standards Board (FASB) hopes to implement that may undercut the efforts of these inspirited investors. The proposal would effectively transform the definition of “materiality,” which defines the information companies have a duty to share with investors. This change to “materiality” could lead to material consequences in the world of financial reporting.
Under FASB’s current rules, information is deemed material if omitting or misstating it could influence investment decisions made by users...to continue reading, click here.