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The International Accounting Standards Board

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The International Accounting Standards Board
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are undertaking the Conceptual Framework project jointly in order to create a sound foundation for the new accounting standard by revising the existing conceptual framework. The International Accounting Standards Board (IASB) is the dependent standard-setting body of the IFRS foundation. The IASB adopted the FASB in its framework as guidelines for the preparation IFRS that it published in 1989. The objective of the framework is to build up new international standards by updating and refining the existing concepts, whereby assist national standard-setting bodies in developing standards consistent with international standards. However the application of Unite State GAAP (general accepted accounting principles) had no formal accounting practice requirements of Companies Acts or Codes, although it is commonly required by the Security Exchange Commission (SEC) to register with GAAP. In this sense, an agreed International Conceptual Framework is seems to be necessary to undertake as the US GAAP under the FASB does not have an appropriate accounting standards for non-US company which they need to joint with IASB to produce a consistent standards, so that there is a standard format for the entity to prepare their financial statement.
In general, a conceptual framework is like a constitution for financial report according to Kieso, Weygandt and Warfield (2011), it is “a coherent system of interrelated objectives and fundamentals that can lead to consistent standard and that prescribes the nature, function and limits of financial accounting and financial statement.” A general purpose of financial report is to provide information that is useful to reflect the changes in the market, business practices and economic decision-making process. Hence it is a necessity to develop an agreed International Conceptual Framework with an overall objective of the IASB and FASB that
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