IASB consults on revised conceptual framework for financial reporting

The IASB is seeking views on proposed amendments to the Conceptual Framework for Financial Reporting: see here. The exposure draft is available here (pdf) and a summary of the proposed changes is available here (pdf). Further background information is available in the 'basis for conclusions' document published by the IASB to accompany the exposure draft: see here (pdf).

If the proposed amendments are accepted, the revised conceptual framework will, amongst other things, give greater prominence, within its discussion of the objective of financial reporting, to the importance of providing information needed to assess management's stewardship. Another proposed amendment provides additional text as part of the explanation of 'faithful representation', one of the fundamental qualitative characteristics. This new text provides that a faithful representation is one that provides information about the substance of an economic phenomenon instead of merely providing information about its legal form. Changes to the definitions of assets and liabilities are also proposed.