Project Update

Conceptual Framework—Phase A: Objective and Qualitative Characteristics

Latest revisions:  As of 29, May 2008 (Updated sections are indicated with an asterisk *)

This project update summarizes the project activities and decisions of the IASB and FASB (the Boards). It was prepared by the staff and is for the information and convenience of the Boards’ constituents. All decisions of the Boards are tentative, may change at future Board meetings, and do not change current accounting and reporting requirements. Decisions of the Boards become final only after extensive due process.

Project Objective
*Due Process Documents
*Decisions Reached at the Last Meeting
*Summary of Decisions Reached to Date
*Next Steps
Board/Other Public Meetings
Related FASB Articles
Contact Information

Objective of Phase A

The aim of Phase A, Objectives and Qualitative Characteristics of Financial Reporting, is to consider:

• The objective of financial reporting

• The qualitative characteristics of financial reporting information

• The trade-offs among qualitative characteristics and how they relate to the concepts of materiality and cost-benefit relationships.

*Due Process Documents

The Boards issued an Exposure Draft, Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics and Constraints of Decision-Useful Financial Reporting Information, on May 29, 2008. The comment period ends on September 29, 2008.

On July 6, 2006, both Boards published for public comment an IASB Discussion Paper/FASB Preliminary Views, Preliminary Views on an Improved Conceptual Framework for Financial Reporting: Objective of Financial Reporting and Qualitative Characteristics of Decision-Useful Financial Reporting Information. The comment period ended November 3, 2006. The Boards discussed the comments received and are currently redeliberating the issues raised by respondents.

View the comment analysis.

*Decisions Reached at the Last Meeting

IASB Update April 2008
FASB Action Alert—April 21, 2008 joint meeting

*Summary of Decisions Reached to Date

See Exposure Draft for decisions reached to date.

*Next Steps

The Boards will consider comments from respondents to the Exposure Draft.

Board/Other Public Meetings

View the FASB and IASB meeting handouts, minutes, and updates.

Related FASB Articles

Relevance and Reliability—Article from The FASB Report (February 28, 2005)

Contact Information

Jeff Johnson
FASB Project Manager
jjjohnson@fasb.org

Li Li Lian
IASB Project Manager
llian@iasb.org