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Conceptual Framework Phase A – Objective and qualitative characteristics

Background

At their joint meeting in October 2004, the IASB and the US FASB decided to add to their respective agendas a joint comprehensive 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 A deals with:

    • the objective of financial reporting – stewardship, primary users, financial stability, and the reporting entity
    • qualitative characteristics – the attributes that make financial information useful.

 

Current status of the project

Phase A of the overall Conceptual Framework project has been completed.

The IASB published Conceptual Framework for Financial Reporting 2010 on 28 September 2010, incorporating Chapter 1 and Chapter 3 of the planned new Conceptual Framework.  The new Conceptual Framework combines these new chapters with the text carried forward from the 1989 framework.

 

Project milestones

DateDevelopmentComments
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 improved Conceptual Framework for Financial Reporting: Chapters 1 and 2 published (Phase A) Comment deadline 29 September 2008

28 September 2010

Conceptual Framework for Financial Reporting 2010 published Completion of Phase A, effectively immediately applicable

Related Discussions

  • 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 A — Objective and Qualitative Characteristics

  • Mar 19, 2009

  • The objective of this session was to discuss concerns raised by respondents regarding the objective of financial reporting. The staff introduced the topics by noting that the ED proposed that the objective of financial reporting should encompass all decisions made by capital providers of a reporting entity in their capacity as capital providers.

  • Conceptual Framework Phase A — Objective and Qualitative Characteristics

  • Dec 16, 2008

  • The IASB staff presented a preliminary analysis of the major issues raised by respondents to the Exposure Draft of Chapters 1 and 2 of the IASB Framework, which addressed the Objective of Financial Reporting and the Qualitative Characteristics and Constraints of Decision-useful Financial Reporting Information.

  • Conceptual Framework Phase A — Objective and Qualitative Characteristics

  • Dec 13, 2007

  • At this meeting the Board discussed three options in relation to the replacement of the term 'reliability' with 'faithful representation' and, in particular, its implications for the recognition criteria in paragraph 86 of the existing Framework, which deal with the reliability of measurements.

  • Conceptual Framework Phase A — Objective and Qualitative Characteristics

  • Jun 20, 2007

  • Following the analysis of comments received related to the Discussion Paper (DP) Preliminary Views on an Improved Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics of Decision-Useful Financial Reporting Information, the staff presented issues requiring decisions by the Board.

  • Conceptual Framework

  • Dec 13, 2005

  • The Board were asked to consider three papers, as follows (1) Qualitative characteristics: costs and benefits (2) Elements 1: asset definition; and (3) Reporting entity: preliminary staff research.

  • Conceptual Framework

  • Oct 19, 2005

  • The Board continued its discussion of a staff proposal on the process for assessing the qualitative characteristics of financial statements. The Board also discussed whether the objectives of financial reporting and the qualitative characteristics of financial statements were (or should be) the same for all types of entities. Further, the Board held a brief discussion on the objectives of financial reporting and a brief discussion of the proposed project plan.

  • Conceptual Framework

  • Jul 20, 2005

  • The Board was joined in London by a member of the FASB staff and a member of the Canadian AcSB staff to discuss objectives of financial reporting, qualitative characteristics, and the definitions of 'understandability' and 'materiality'.

All Related