IASB ISSUES DISCUSSION PAPER ON CONCEPTUAL FRAMEWORK
The IASB responds to public call to update its Conceptual
Framework. Arjan Brouwer from PwC's Accounting Consulting
Services looks at the proposals and next steps.
The IASB has issued a discussion paper (DP) on the Conceptual
Framework (the 'Framework') project. The DP asks
respondents for initial views on fundamental issues such as the
recognition hurdles for assets and liabilities, debt versus equity,
relevant measurement bases and which principles should underlie
disclosure requirements. Many supported giving priority to this
project during the consultation on the IASB's future work
plan.
Why a new framework?
A conceptual framework is an important basis for the development
of accounting standards that are both principles based and
internally consistent. Some argue that such consistent conceptual
basis has been missing in recent board deliberations. Debate about
the definition of assets and liabilities,
