Our aspiration for the project is to pave the way for a set of internally consistent accounting standards that reduce complexity and improve comparability, and a faster, less controversial process for producing new standards.
We believe that the consultation document is a good starting point for promoting debate on the fundamental principles underlying financial reporting, and for seeking practical solutions. However, principles need to be established in relation to some important issues – e.g. ‘performance’, ‘unit of account’ and ‘obligating event’. More work is required before the aspirations for this project can be fulfilled.