Conceptual Framework Phase A — Objective and Qualitative Characteristics

Date recorded:

Presentation of the staff summary of comments received

The Board was joined by IASB Member Tom Jones and various members of the FASB staff by video and audio link.

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. There were some general comments from Board members, but no decisions were asked for. The staff will return with specific issues for decision at subsequent meetings.

Project plan

The Board agreed the following project plan:


Major issues and objectives for the meeting

February 2009

Chapter 2

  • Distinction between fundamental and enhancing QCs
  • Which QCs should be considered fundamental and enhancing?
  • Should we maintain the term reliability?
  • Constraints of financial reporting



Chapter 1

  • Scope of the framework (financial reporting or financial statements)
  • Primary user group
  • Objective of financial reporting
  • Entity perspective/theory (to discuss with phase D)


March (Joint)


  • Other issues that were raised in the preface to the phase A ED and phase D DP.
  • How to make the new Framework effective?



Other sweep issues (if necessary)


Ballot and publish final chapters

The Board also agreed that further public roundtables on Chapters 1 and 2 were not necessary.

General comments

The staff discussed briefly a summary of comments received on the 'preface' to the ED on Chapters 1 and 2 and the Discussion Paper on The Reporting Entity. The staff noted that a number of the issues raised by constituents will feature in future discussions, either at the joint IASB-FASB meeting in March 2009 or other meetings. These include:

  • how the Boards intend to finalise the revised Framework (chapter by chapter or all at once),
  • the status of the Framework in the IASB and FASB hierarchy, and
  • the application of the IASB Framework to not-for-profit entities


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