Currently, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are each guided by their own individual framework. Because these differ from each other in various respects, the boards agreed to the joint development of a common conceptual framework that brings together the existing frameworks of both boards. Recently, the boards each published for public comment the first two chapters of the conceptual framework setting forth their preliminary views on the objective of financial reporting and the qualitative characteristics of decision-useful financial information.
The FASB and the IASB invite comments on their preliminary views by November 3, 2006. The FASB’s preliminary views are available at http://www.fasb.org/draft/pv_conceptual_framework.pdf, and the IASB’s preliminary views are expected to be available at www.iasb.org after July 17, 2006. In addition to these initial chapters, the boards plan further chapters addressing such matters as the definitions of assets, liabilities, revenues and expenses, how they are recognized and measured in financial statements, and the presentation of disclosures in financial statements.
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