Bedrock Terms Gain New Definitions in Accounting Board Framework

U.S. accounting rulemakers on Wednesday published new definitions of bedrock financial concepts like “assets” and “liabilities” as part of an update to an internal document they use to set consistent accounting standards.

The updates won’t affect accounting for the U.S. companies and not-for-profit organizations that use the Financial Accounting Standards Board’s accounting rules. Instead, the new definitions will be included in FASB’s Conceptual Framework, an internal handbook the board refers to when it’s setting new standards.

Under the revised definitions, an asset is “a present right of an entity to an economic benefit.” A liability is “a present obligation ...