The International Accounting Standards Board (IASB) and the U.S. Financial Accounting Standards Board (FASB) last week announced the completion of the first phase of their joint project to develop an improved conceptual framework for International Financial Reporting Standards (IFRSs) and U.S. generally accepted accounting practices (GAAP).
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The objective of the conceptual framework project is to create a sound foundation for future accounting standards that are principles-based, internally consistent, and internationally converged. The new framework builds on existing IASB and FASB frameworks. The IASB has revised portions of its framework; while the FASB has issued ‘Concepts Statement 8’ to replace ‘Concepts Statements 1 and 2.’
This first phase of the conceptual framework deals with the objective and qualitative characteristics of financial reporting. As part of the consultation process, the IASB and FASB jointly published a discussion paper and exposure draft that resulted in more than 320 responses.
A feedback statement providing an overview of how the IASB responded to comments received through the consultation process is available for download.
An IASB podcast summary of the project is available for download in individual mp3 files or from iTunes. A podcast has been posted by the FASB that will examine and explain the purpose of a concepts statement.