The recently added material addresses and further enhances two important aspects of financial reporting: elements of financial statements and presentation. The new chapters provide the basis for data that is relevant to the ongoing objective of financial reporting: to improve the clarity of data that entities provide to current and potential investors, lenders, donors, and other resource providers. These additions offer the following new information:

• Chapter 4, Elements of Financial Statements - FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting distinguishes elements of financial statements to be applied in developing standards for both corporations and nonprofits. Chapter 4 replaces Concepts Statement No. 6, Elements of Financial Statements.
• Chapter 7, Presentation - FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting identifies factors that help the FASB determine how items should be displayed on the financial statements. The FASB will prioritize the factors both based on the item being reviewed for presentation purposes and in the context of best meeting the objective of financial reporting. Chapter 7 overrides sections of Concepts Statement No. 5, Recognition and Measurement in Financial Statements of Business Enterprises.

A Statement of Financial Accounting Concepts is not authoritative and does not establish or change generally accepted accounting standards.

The new chapters are now available on fasb.org.

Sources:

FASB Issues Two New Chapters of Its Conceptual Framework (fasb.org)

Conceptual Framework (fasb.org)