The FASB's Conceptual Framework for Financial Reporting: A Critical Analysis by the American Accounting Association's Financial Accounting Standards Committee

Posted: 2 Jul 2013

See all articles by George J. Benston

George J. Benston

Emory University - Department of Accounting

Douglas R. Carmichael

City University of New York (CUNY) - Stan Ross Department of Accountancy

Karim Jamal

University of Alberta - Department of Accounting, Operations & Information Systems

Joel S. Demski

University of Florida - Fisher School of Accounting

Bob Laux

Microsoft Corporation

Shivaram Rajgopal

Columbia Business School

George Vrana

Ernst & Young LLP

Bala G. Dharan

Harvard Law School; Berkeley Research Group LLC; Rice University

Date Written: June 1, 2006

Abstract

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.

Keywords: FASB, IASB, conceptual framework, accounting standards, financial reporting

JEL Classification: M40

Suggested Citation

Benston, George J. and Carmichael, Douglas R. and Jamal, Karim and Demski, Joel S. and Laux, Bob and Rajgopal, Shivaram and Vrana, George and Dharan, Bala G., The FASB's Conceptual Framework for Financial Reporting: A Critical Analysis by the American Accounting Association's Financial Accounting Standards Committee (June 1, 2006). University of Alberta School of Business Research Paper No. 2013-1028, Accounting Horizons, Vol. 21, No. 2, 2007, Available at SSRN: https://ssrn.com/abstract=2278980

George J. Benston (Contact Author)

Emory University - Department of Accounting ( email )

Goizueta Business School
1300 Clifton Road
Atlanta, GA 30322
United States
404-727-7831 (Phone)
404-727-5238 (Fax)

Douglas R. Carmichael

City University of New York (CUNY) - Stan Ross Department of Accountancy ( email )

One Bernard Baruch Way, Box B12-225
New York, NY 10010
United States

Karim Jamal

University of Alberta - Department of Accounting, Operations & Information Systems ( email )

Edmonton, Alberta T6G 2R6
Canada
780-492-5829 (Phone)
780-492-3325 (Fax)

Joel S. Demski

University of Florida - Fisher School of Accounting ( email )

Warrington College of Business
PO Box 117166
Gainesville, FL 32611-7166
United States
352-392-7597 (Phone)
352-378-1079 (Fax)

Bob Laux

Microsoft Corporation ( email )

One Microsoft Way
Redmond, WA 98052
United States

Shivaram Rajgopal

Columbia Business School ( email )

3022 Broadway
New York, NY 10027
United States

George Vrana

Ernst & Young LLP ( email )

One MOre London Place
1225 Connecticut Ave NW # 700
New York, NY SE1 2AF
United States

Bala G. Dharan

Harvard Law School ( email )

1575 Massachusetts
Hauser 406
Cambridge, MA 02138
United States

Berkeley Research Group LLC ( email )

Boston, MA
United States

Rice University ( email )

6100 South Main Street
Houston, TX 77005
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
1,237
PlumX Metrics