Financial Reporting

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  • Topic: International Financial Reporting Standards, Financial statements, 2009
  • Pages : 10 (2833 words )
  • Download(s) : 58
  • Published : December 25, 2012
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Conceptual Framework — IASB-FASB joint project
Background
At their joint meeting in October 2004, the IASB and the US FASB decided to add to their respective agendas a joint project to develop a common conceptual framework, based on and built on both the existing IASB Framework and the FASB Conceptual Framework, that both Boards would use as a basis for their accounting standards.

The two boards reached the following tentative decisions about the approach to the project: * The project should initially focus on concepts applicable to business entities in the private sector. Later, the boards should consider the applicability of those concepts to other sectors, beginning with not-for-profit organisations in the private sector. * The project should be divided into phases, with the initial focus being on achieving the convergence of the frameworks and improving particular aspects of the frameworks dealing with objectives, qualitative characteristics, elements, recognition, and measurement. Furthermore, as the frameworks converge and are improved, priority should be given to addressing issues that are likely to yield benefits to the boards in the short term, that is, cross-cutting issues that affect a number of their projects for new or revised standards. * The converged framework should be in the form of a single document. It should include a summary and a basis for conclusions.  

Current status of the project
During late 2010, the Board effectively deferred further work on the joint project until after other more urgent convergence projects were finalised. As a result of the IASB's Agenda Consultation project, the IASB decided in September 2012 to reactivate the Conceptual Framework project as an IASB-only comprehensive project. Before being suspended, the joint IASB-FASB Conceptual Framework project was being conducted in a number of phases.  The table below summarises the progress of each phase, and the IASB's future plans for that phase: Phase| Status|

Phase A: Objectives and qualitative characteristics| Completed, Conceptual Framework for Financial Reporting 2010 issued on 28 September 2010|
Phase B: Elements and recognition| To be further considered as part of the IASB-only comprehensive project| Phase C: Measurement| To be further considered as part of the IASB-only comprehensive project| Phase D: Reporting entity| Exposure Draft ED/2010/2 Conceptual Framework for Financial Reporting: The Reporting Entity published on 11 March 2010.  To be further considered as part of the IASB-only comprehensive project| Phase E: Presentation and disclosure| To be further considered as part of the IASB-only comprehensive project. However, this will not be extended to other areas within the original scope of phase E, such as preliminary announcements and press releases| Phase F: Purpose and status| Work on this phase is to be discontinued as the project is being continued as an IASB-only project. One of the objectives of this phase was to reach a converged IASB-FASB view on the secondary purpose of the framework to assist preparers in preparing financial statements (which is not present in US GAAP)| Phase G: Application to not-for-profit entities| Work on this phase will be discontinued as the current focus of the IASB is on business entities in the private sector| Phase H: Remaining issues| This phase will not needed as the remaining topics to be considered as part of the IASB-only project are intended to be developed and issued together|

 
Project milestones
Date| Development| Comments|
October 2004| Comprehensive project added to the active agenda| | 6 July 2006| Discussion Paper Preliminary Views on an improved Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics of Decision-useful Financial Reporting Information published (Phase A)| Comment deadline 3 November 2006| 29 May 2008| Exposure Draft An...
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