The International Accounting Standards Board (IASB) has published Discussion Paper DP/2013/1 A Review of the Conceptual Framework for Financial Reporting. The Discussion Paper is the first step towards issuing a revised Conceptual Framework.
The Conceptual Framework for Financial Reporting (the ‘Conceptual Framework’) sets out the concepts that underlie the preparation and presentation of financial statements. The IASB’s preliminary view is that the primary purpose of the Conceptual Framework is to assist the IASB by identifying concepts that it will use consistently when developing and revising International Financial Reporting Standards (IFRSs).
Although the existing Conceptual Framework has helped the IASB when developing and revising IFRSs, the IASB has identified a number of problems with the existing Conceptual Framework:
The Discussion Paper is designed to obtain initial views and comments on important issues that the IASB will consider as it develops an Exposure Draft of a revised Conceptual Framework. The issues include:
The New Zealand Accounting Standards Board (NZASB) is particularly seeking constituents’ views on:
Read DP/2013/1 A Review of the Conceptual Framework for Financial Reporting
Read IASB Snapshot Review of the Conceptual Framework
Comments are due to the NZASB by 22 November 2013 and to the IASB by 14 January 2014.
Comments, both formal and informal, can be made to the NZASB addressed to the Chief Executive, External Reporting Board, PO Box 11250, Manners Street Central, Wellington 6142, or by email to firstname.lastname@example.org.
Respondents are also encouraged to send comments directly to the IASB, with a copy to the NZASB. Comments can also be made electronically via the IASB website (www.ifrs.org), using the ‘Comment on a proposal’ page located via the ‘Get Involved’ tab. The NZASB would appreciate copies of submissions made directly to the IASB.
It would be appreciated if respondents send their comments in electronic form (PDF and Microsoft Word formats) as it allows for efficient collation and analysis of comments. All comments will ultimately be posted on the XRB website unless respondents indicate that they wish their comments to remain confidential.