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AIA

IASB finally issues conceptual framework draft

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23rd Jul 2013
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The International Accounting Standards Board (IASB) has issued a revised draft of its conceptual framework after tackling other issues stemming from the financial crisis.

The new discussion paper explores changes to the framework for financial reporting and is the first step towards issuing a revised ‘conceptual framework’.

It sets out the concepts that underlie the preparation and presentation of financial statements and identifies principles for the IASB to use when it develops and revises its IFRS.

The existing framework has enabled the development of high quality IFRS that have improved financial reporting, however, it does not cover some important areas and some guidance needs updating, according to the IASB.

Following a 2011 consultation on the board’s future agenda, respondents made it clear that they saw the framework as a “high priority” project.

The new discussion paper is designed to obtain initial views and comments on the following issues:

  • definitions of assets and liabilities
  • recognition and derecognition
  • the distinction between equity and liabilities
  • measurement
  • presentation and disclosure
  • other comprehensive income

Hans Hoogervorst, chairman of the IASB, said: “The conceptual framework underpins the work of the IASB and affects all IFRS that we develop. This discussion paper gives people the opportunity to help us to shape the future of financial reporting by discussing the concepts that drive our work.”

The discussion paper is available for comment until 14 January 2014. The IASB will also undertake an outreach programme designed to obtain feedback on the areas covered in the paper.

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