The Financial Accounting Standards Board (FASB) has issued an Invitation to Comment on Reducing Complexity in Reporting Financial Instruments. The Invitation to Comment seeks input on whether there is a need for the FASB to add a project to simplify and improve standards for measurement of financial instruments and, if so, what kind of projects or approaches should be considered. This document also describes how current measurement requirements cause complexity, discusses ways it might be reduced in the intermediate term, and suggests how using a single measurement attribute such as fair value could reduce complexity. The Invitation to Comment includes a discussion paper issued by the International Accounting Standards Board, Reducing Complexity in Reporting Financial Instruments, which analyzes the main causes of complexity in reporting financial instruments and proposes possible intermediate approaches to address some of them, including amending or replacing existing reporting requirements.
The FASB’s Invitation to Comment is available for comment until September 19, 2008.
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