In the aftermath of the global financial crisis, there has been much discussion about whether global accounting standards are still fit for purpose.
On 18 July, the IASB published a discussion paper responding to long-standing calls to review its Conceptual Framework – which is essential to developing high-quality, principles-based standards – amid more recent concerns such as the growing complexity in financial reporting.
- What is an asset and what is a liability?
- When should they be recorded on, or taken off, the balance sheet?
- How should they be measured?
- Should an item of income or expense be recorded above or below the bottom line?
This is a welcome opportunity for stakeholders from every part of the financial reporting chain to offer their views to the IASB, which should not be missed.
Comments are due to the IASB by 14 January 2014.
For more information on the proposals, read the press releases issued by the IASB and KPMG. And look out for our upcoming In the Headlines, which will help you to understand what the proposals mean for your business.