SYNOPSIS: This paper addresses the issues that confront the FASB and IASB in developing a new conceptual framework document. First, we suggest characteristics that a conceptual framework ought to exhibit. Most of these suggestions are based on our critique of the existing framework and the FASB-IASB work in progress. Second, we present a model framework that exhibits these characteristics. We emphasize up front that this framework is quite explicit. It goes to the heart of what a framework document should do: it places specific restrictions on what constitutes admissible accounting standards. The purpose of our effort is to stimulate broad discussion of alternative approaches to foundational documents and to offer a specific example of such an alternative approach.
A Framework for Financial Reporting Standards: Issues and a Suggested Model
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American Accounting Association’s Financial Accounting Standards Committee (AAA FASC), James A. Ohlson, Stephen Penman, Robert Bloomfield, Theodore E. Christensen, Robert Colson, Karim Jamal, Stephen Moehrle, Gary Previts, Thomas Stober, Shyam Sunder, Ross L. Watts; A Framework for Financial Reporting Standards: Issues and a Suggested Model. Accounting Horizons 1 September 2010; 24 (3): 471–485. doi: https://doi.org/10.2308/acch.2010.24.3.471
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