Conceptual Framework—Joint Project of the IASB and FASB
Project Information Page
Last updated on November 23, 2010. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.
(Updated sections are indicated with an asterisk *)
This project update summarizes the project activities and decisions of the IASB and FASB (the Boards). It was prepared by the staff and is for the information and convenience of the Boards’ constituents. All decisions of the Boards are tentative, may change at future Board meetings, and do not change current accounting and reporting requirements. Decisions of the Boards become final only after extensive due process.
The objective of the conceptual framework project, a joint project of the FASB and IASB, is to develop an improved common conceptual framework that provides a sound foundation for developing future accounting standards. Such a framework is essential to fulfilling the Boards’ goal of developing standards that are principles-based, internally consistent, and internationally converged and that lead to financial reporting that provides the information capital providers need to make decisions in their capacity as capital providers. The new framework, which will deal with a wide range of issues, will build on the existing IASB and FASB frameworks and consider developments subsequent to the issuance of those frameworks.
The Boards are conducting this joint project in eight phases. Each of the first seven phases will address and involve planning, research, initial Board deliberations, public comment, and redeliberations on major aspects of the Boards’ frameworks. The eighth phase will be used to address any remaining issues. The following list provides links to the separate project updates for each of the three active phases of the project (currently, there are eight phases to the project):
|Elements and Recognition|
For each phase, the Boards plan to issue documents that will seek comments from the public on the Boards’ tentative decisions. The Boards will consider these comments and redeliberate their tentative decisions. While the Boards plan to seek comments on each phase separately, they have not precluded seeking comments on several phases concurrently.
The Boards have completed the following phase(s) of the conceptual framework project:
|Objective and Qualitative Characteristics||09/28/10|
RELATED FASB AND IASB ARTICLES
In October 2004, the FASB and IASB added to their agendas a joint project to develop an improved, common conceptual framework that builds on their existing frameworks (that is, the IASB’s Framework for the Preparation and Presentation of Financial Statements and the FASB’s Statements of Financial Accounting Concepts). The project will do the following:
- Focus on changes in the environment since the original frameworks were issued, as well as omissions in the original frameworks, in order to efficiently and effectively improve, complete, and converge the existing frameworks.
- Give priority to addressing and deliberating those issues within each phase that are likely to yield benefits to the Boards in the short term; that is, cross-cutting issues that affect a number of their projects for new or revised standards. Thus, work on several phases of the project will be conducted simultaneously and the Boards expect to benefit from work being conducted on other projects.
- Initially consider concepts applicable to private sector business entities. Later, the Boards will jointly consider the applicability of those concepts to private sector not-for-profit organizations. Representatives of public sector (governmental) standard-setting Boards are monitoring the project and, in some cases, considering the potential consequences of private sector deliberations for public sector entities.
FASB Project Manager
FASB International Fellow
FASB Assistant Project Manager
IASB Technical Manager
Additional contact information is available on each active phase’s project page.