Conceptual Framework: IASB-FASB Joint Project
Info
Conceptual Framework — IASB-FASB joint project
Background
At their joint meeting in October 2004, the IASB and the US FASB decided to add to their respective agendas a joint project to develop a common conceptual framework, based on and built on both the existing IASB Framework and the FASB Conceptual Framework, that both Boards would use as a basis for their accounting standards.
The two boards reached the following tentative decisions about the approach to the project: * The project should initially focus on concepts applicable to business entities in the private sector. Later, the boards should consider the applicability of those concepts to other sectors, beginning with not-for-profit organisations in the private sector. * The project should be divided into phases, with the initial focus being on achieving the convergence of the frameworks and improving particular aspects of the frameworks dealing with objectives, qualitative characteristics, elements, recognition, and measurement. Furthermore, as the frameworks converge and are improved, priority should be given to addressing issues 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. * The converged framework should be in the form of a single document. It should include a summary and a basis for conclusions. Current status of the project
During late 2010, the Board effectively deferred further work on the joint project until after other more urgent convergence projects were finalised.
As a result of the IASB's Agenda Consultation project, the IASB decided in September 2012 to reactivate the Conceptual Framework project as an IASB-only comprehensive project.
Before being suspended, the joint IASB-FASB Conceptual Framework project was being conducted in a number of phases. The table below summarises the progress of each phase, and the IASB's future plans for that
Conceptual Framework — IASB-FASB joint project
Background
At their joint meeting in October 2004, the IASB and the US FASB decided to add to their respective agendas a joint project to develop a common conceptual framework, based on and built on both the existing IASB Framework and the FASB Conceptual Framework, that both Boards would use as a basis for their accounting standards.
The two boards reached the following tentative decisions about the approach to the project: * The project should initially focus on concepts applicable to business entities in the private sector. Later, the boards should consider the applicability of those concepts to other sectors, beginning with not-for-profit organisations in the private sector. * The project should be divided into phases, with the initial focus being on achieving the convergence of the frameworks and improving particular aspects of the frameworks dealing with objectives, qualitative characteristics, elements, recognition, and measurement. Furthermore, as the frameworks converge and are improved, priority should be given to addressing issues 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. * The converged framework should be in the form of a single document. It should include a summary and a basis for conclusions. Current status of the project
During late 2010, the Board effectively deferred further work on the joint project until after other more urgent convergence projects were finalised.
As a result of the IASB's Agenda Consultation project, the IASB decided in September 2012 to reactivate the Conceptual Framework project as an IASB-only comprehensive project.
Before being suspended, the joint IASB-FASB Conceptual Framework project was being conducted in a number of phases. The table below summarises the progress of each phase, and the IASB's future plans for that