The Financial Accounting Standards Board recently proposed a new Accounting Standards Update designed, they say, to improve financial reporting.
The new proposed standards consist of three main parts:
- Disclosing expected cash flow obligations in a table, segregated by their expected maturities. No need, however, to include the reporting organization’s financial assets.
- Providing your available liquid funds in a table, including unencumbered cash, high quality liquid assets and borrowing availability.
- Offering additional quantitative or narrative disclosure of your exposure or liquidity risk.
Note: The FASB is proposing additional requirement for financial institutions.
To see the proposed standards, go here.