International Accounting Standards Board (Iasb) and the Us Financial Accounting Standards Board (Fasb)
On September 28 2010, the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) had declared they had completely conducted the first stage of The Conceptual Framework joint project. The purpose of this joint project is to further improve an advanced conceptual framework for International Financial Reporting Standards (IFRSs) and US Generally Accepted Accounting Practices (GAAP) (Norwalk 2010). Basically, the conceptual framework is an attempt to express the nature and purpose of accounting and when concerned to financial reporting, it was considered a GAAP statement that create a reference frame for the evaluation of current practices and the development of new ones (ACCA 2011).
First of all, there is a need to develop an agreed international conceptual framework due to the reason of fills in the framework which reflects by the changes in the market, business practice, and the economic environment. Most of the frameworks are quite similar in the existing concept, but, since the concepts were developed, those concepts are improvised. In an agreed International Concept Framework, there is a need to develop because these frameworks require providing the best foundation principled based common standards to improve conceptual framework. Normally, to improve this framework the goals are updating and refining the existing concepts to reflect changes in markets, business practices and the economic environment that occurred (International Accounting Standards 2008). Moreover, according to International Accounting Standards 2008, the boards also tried to improvise few of the parts of the existing frameworks, such as recognition and measurement, as well as to fill some gaps in the frameworks. For instance, there is no definition of the reporting entity in the IASB's agreed international framework. Additionally, if a problem were occurred, then an agreed International Framework could solve it such as if a priority was provided
First of all, there is a need to develop an agreed international conceptual framework due to the reason of fills in the framework which reflects by the changes in the market, business practice, and the economic environment. Most of the frameworks are quite similar in the existing concept, but, since the concepts were developed, those concepts are improvised. In an agreed International Concept Framework, there is a need to develop because these frameworks require providing the best foundation principled based common standards to improve conceptual framework. Normally, to improve this framework the goals are updating and refining the existing concepts to reflect changes in markets, business practices and the economic environment that occurred (International Accounting Standards 2008). Moreover, according to International Accounting Standards 2008, the boards also tried to improvise few of the parts of the existing frameworks, such as recognition and measurement, as well as to fill some gaps in the frameworks. For instance, there is no definition of the reporting entity in the IASB's agreed international framework. Additionally, if a problem were occurred, then an agreed International Framework could solve it such as if a priority was provided