This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Conceptual Framework

Date recorded:

At the April joint IASB/FASB meeting, the Boards discussed a staff proposal to undertake a joint project to develop a common (converged) conceptual framework that both Boards agree on and that improves on their two existing frameworks.

The purpose of today's session was to familiarise the Board with the issues that would be presented at the joint IASB-FASB meeting in October, for which a joint staff team will present a paper with joint staff recommendations.

The following are some of the issues that arose during this preliminary discussion:

  • It was evident from discussion that both the IASB and FASB conceptual frameworks required improvement and not just convergence.
  • During convergence, and consistent with the objective of improving the conceptual framework, due consideration would be given to any other existing conceptual frameworks, not just the IASB and FASB frameworks.
  • The Boards' constituents will have the opportunity to comment on the improved and converged framework, as with to any other IASB pronouncement.

The point was made that such a project was in fact a major one that could not be classified as short-term; hence there was a need for the Board to segment and prioritise this project. There was however, no agreement on how to prioritise, with the Board agreeing to debate this again in October. The issues of concern in this regard were as follows:

  • Segmenting the project would present challenges as generally the concepts within the framework are interrelated. For example, improvements and convergence on measurement issues could not be undertaken in isolation, as they required agreement first, on issues of 'what' to measure (definitions of elements etc) and 'when' (recognition criteria) to measure them.
  • Process differences at the IASB and FASB, both in developing the pronouncement as well as on public consultation and other due process steps.
  • Issues still to be dealt with on the Board's agenda which would have an influence on the conceptual framework. For example, the notion of an economic versus a reporting entity would only be dealt with when the Board addresses consolidations.
  • The development of a conceptual framework, by its nature, is an on-going exercise.

The Board considered a similar project currently underway in Canada that may result work that is useful in the IASB-FASB project.

No decisions were made during this session.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.