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
Date Written: June 1, 2006
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: Suggested Citation