IASB and FASB complete first stage of conceptual framework

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28 Sep, 2010

The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) today announced the completion of the first phase of their joint project to develop an improved conceptual framework for International Financial Reporting Standards (IFRSs) and US generally accepted accounting practices (GAAP).

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.

Work on the framework project is being carried out in stages. As each chapter is finalised, the relevant paragraphs in the Framework for the Preparation and Presentation of Financial Statements that was published in 1989 will be replaced.

Today the chapters 1 The objective of financial reporting and 3 Qualitative characteristics of useful financial information were published. Chapter 2 will deal with the reporting entity concept. The Board published an exposure draft on this topic in March 2010 and the comment period ended on 16 July 2010.

While the IASB has revised the portions of its framework as described above; the FASB has issued Concepts Statement 8' to replace Concepts Statements 1 and 2'. The IASB document is available for eIFRS subscribers only; the FASB document, containing also the chapters The Objective of General Purpose Financial Reporting and Qualitative Characteristics of Useful Financial Information is freely available on the FASB's website.

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