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Conceptual Framework: Financial Reporting - Essay Example
Author : flatleybeaulah
Finance & Accounting
Pages 4 (1004 words)
Running Head: CONCEPTUAL FRAMEWORK Conceptual Framework University Name Subject Name Instructor Name Conceptual Framework Introduction The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) are working together to develop a robust conceptual framework for the purpose of financial accounting and reporting…
The Conceptual Framework for Financial Accounting Accounting is at the core of business finance, and with the dynamic developments of the global economics, this subject has also become a key area of research and analysis. In this situation, even the most basic accounting concepts like assets, liabilities, revenue, debt, etc. are of critical importance. Terms based on the accounting concepts need to be refined, and if necessary, redefined to suite the requirements of modern financial accounting. FASB has declared 7 pronouncements (6 of which are extant) termed as Statements of Financial Accounting Concepts (CON) in a serial design to constitute a common base of financial accounting and reporting standards. This conceptual framework has been formed to prescribe the boundaries, functions and characteristics of financial accounting. This will provide consistent standards for all global financial systems. ...