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Conceptual Framework Phase B — Elements and recognition

As a result of the IASB's Agenda Consultation project, the IASB decided to reactivate the Conceptual Framework project as an IASB-only comprehensive project. We have created a separate page for this new 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 Conceptual Framework project is being conducted in eight phases. Phase B deals with:

  • the various elements of financial statements – assets, liabilities, equity, revenues and expenses
  • the recognition requirements for each element.

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Current status of the project

The IASB and FASB began deliberations on this phase of the project but no due process documents were issued.

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. This project will consider the elements of financial statements, measurement, reporting entity, presentation and disclosure.

 

Project milestones

DateDevelopmentComments
October 2004 Comprehensive project added to the active agenda
September 2012 Project discontinued and replaced by IASB-only comprehensive project

Related Discussions

  • Conceptual framework — Elements of financial statements

  • Apr 24, 2013

  • The Board discussed changes from the previous draft where (1) control was moved back in the asset’s definition; (2) past events were moved back in the liability’s definition; and (3) a new conclusion was included in the discussion about the existence uncertainty.

  • Conceptual Framework - Elements of financial statements

  • Feb 21, 2013

  • The Board was presented, by the staff, an early draft of the section on the definition of equity and the distinction between liabilities and equity instruments that would be included in the Conceptual Framework discussion paper.

  • Conceptual framework

  • Sep 28, 2012

  • The staff presented their proposals to the Board as to how to approach the project on the conceptual framework. The staff recommended that the conceptual framework project should focus on elements of financial statements, measurement, reporting entity, presentation and disclosure. They also noted that the aim would be to work towards a single discussion paper covering all of the areas (rather than the previous joint IASB and FASB phase project on the conceptual framework), rather than separate discussion papers for each area.

  • Conceptual Framework Phase B — Elements and Recognition

  • Jun 20, 2008

  • Before the staff could introduce the topic, a Board member challenged the meeting's working definition of a liability, which he saw as precluding performance obligations (and thus contrary to the Board's work in the revenue section of the Framework project). In his view the clause addressing 'economic obligations' displayed tortured reasoning:

  • Conceptual Framework Phase B — Elements and Recognition

  • Dec 13, 2007

  • The Board discussed the way forward regarding the definition of a liability. The staff noted that Phase B of the Conceptual Framework overlaps with the Liabilities and Equity project and raised the concern that this may result in issuing two contradictory discussion papers.

  • Conceptual Framework Phase B — Elements and Recognition

  • Oct 16, 2007

  • The Board continued its discussion of the definition of an asset. The objective of the discussion was to decide on a definition that could be used as a working definition of an asset as the Board proceeds with other aspects of Phase B of the Conceptual Framework project.

All Related