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Changing the Concepts to Justify the Standards

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  • Patricia C. O'brien

Abstract

In this paper, I discuss the current project to converge the IASB and FASB conceptual frameworks, specifically efforts to purge the converged framework of concepts that hinder the promotion of balance sheet valuation using fair values. I discuss why I believe these efforts to be misguided, based on how investors who analyze financial statements employ accounting information. I focus on stewardship, reliability, and earnings — terms either demoted in importance or at risk of being eliminated in the framework convergence project. I explain their salience to financial statement users and argue against their deletion or demotion.

Suggested Citation

  • Patricia C. O'brien, 2009. "Changing the Concepts to Justify the Standards," Accounting Perspectives, John Wiley & Sons, vol. 8(4), pages 263-275, November.
    • Handle: RePEc:wly:accper:v:8:y:2009:i:4:p:263-275
    DOI: 10.1506/ap.8.4.1
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    References listed on IDEAS

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    7. Geoffrey Whittington, 2008. "Fair Value and the IASB/FASB Conceptual Framework Project: An Alternative View," Abacus, Accounting Foundation, University of Sydney, vol. 44(2), pages 139-168, June.
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