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In a broad sense, a conceptual framework can be seen as a structured theory of accounting. A conceptual framework is intended to set forth objectives and fundamental concepts that will be the basis for the development of accounting standards. A complete, internally consistent, and logical conceptual framework assists the standard setters in developing new and improving existing standards based on underlying concepts. It also assists preparers in applying financial reporting standards, auditors in providing an opinion on whether the financial statements are in accordance with a given set of standards, and users in interpreting the information presented in the financial statements. Moreover, such a well developed conceptual framework facilitates communication between national and international standard setting bodies. In 2004, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) began a joint project to revise and converge their respective conceptual frameworks. The six-year long cooperation on that project resulted in convergence regarding the objective of general purpose financial reporting and the qualitative characteristics of useful financial information. However, in late 2010 the Boards, preoccupied with other joint convergence projects, agreed to discontinue the joint efforts in order to work on their respective frameworks. As the convergence process pursued by FASB and IASB moved the accounting standards into a less rule-based and more principles-based direction, the creation of a well-structured accounting theory has become of paramount importance. No wonder that when questioned about the IASB agenda in 2011, many stakeholders identified the conceptual framework as a priority project. Consequently, the IASB restarted its conceptual framework project in 2012, and independently developed an Exposure Draft of the Conceptual Framework for Financial Reporting in 2015. The final version of the revised conceptual framework was issued on March 29, 2018. Meanwhile, in January 2014, the FASB reactivated its conceptual framework project, focusing on concepts for presentation and measurement. The measurement portion of the project is still at the initial deliberations stage, but a limited Exposure Draft addressing issues of presentation, which would become Chapter 7 of Concepts Statement 8, was issued in 2016. More recently the FASB expanded the conceptual framework project by starting initial deliberations of issues related to the elements of financial statements. The recommendations to continue independent work on the respective conceptual framework projects received by both Boards, and the engagement of constituencies in the due process, indicate how important conceptual framework is not only to standard setters, but also to users of financial statements and other stakeholders. The increasing use of framework-based teaching of accounting standards adds further urgency to this need., INTRODUCTION A conceptual framework is a logical system of interrelated objectives and basic concepts that prescribe the nature, function, and limits of financial reporting, which is expected to lead to [...]

Executive Summary The rules governing the consolidation of economic entities have been controversial for many years. The abuse of Special Purpose Entities in the early 2000s started a debate in [...]

Executive Summary Recent developments in global financial reporting have increased the likelihood of U.S. public companies being allowed or even required to adopt International Financial Reporting Standards (IFRS) in the [...]

Executive Summary The establishment of a single set of high quality global accounting standards is a matter of growing importance as the participants in the ever increasingly integrated world capital [...]

Introduction This issue of the Review of Business provides informative articles on the two most important financial accounting and reporting topics affecting the accounting profession in recent history. The first [...]

As they await the SEC's decision on its road map to International Financial Reporting Standards (IFRS), U.S. companies may benefit from early assessment of the potential impact of IFRS adoption [...]

Abstract In September 2006, the Financial Accounting Standards Board issued a new standard, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157). Prior to this Statement, U.S. [...]

During most of the last century, standard setters emphasized historical cost accounting. Under this traditional accounting model, the income statement, which results from matching an entity's revenues with expenses during [...]

IN SEPTEMBER 2002, the Parliament and Council of the European Union (EU) introduced the biggest change to financial reporting in Europe in 30 years. They approved a new Accounting Regulation [...]

On August 18, 2005, the International Accounting Standards Board (IASB) issued International Financial Reporting Standard 7, Financial Instruments: Disclosures (IFRS-7), and a complementary Amendment to International Accounting Standard 1, Presentation [...]

In October 2002, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued a memorandum of understanding, called the Norwalk Agreement, professing their commitment to the [...]

Abstract The recent spate of accounting scandals in the United States and in the European Union have shaken the faith in capital markets. Comprehensive measures have been undertaken on both [...]

Abstract Accounting for research and development (R & D) activities is an area of divergence between U.S. Generally Accepted Accounting Standards (U.S. GAAP) and International Financial Reporting Standards (IFRS). Under [...]

The use of share-based payments has expanded greatly in recent years in many countries, while there was no international accounting standard covering the recognition or measurement of these payments. Many [...]

In June 2002, the European Union approved a regulation that will require all EU-listed companies to prepare consolidated financial statements in accordance with International Financial Reporting Standards (IFPSs). (1) The [...]

In June 2000, the European Commission (EC) responsible for the implementation of various European Union (EU) directives and regulations adopted its communication, 'The EU's Financial Reporting Strategy: The Way Forward.' [...]

At their historic joint meeting in Norwalk, CT, on September 18, 2002, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) acknowledged their commitment to the [...]

The International Accounting Standards Board (IASB) issued in December 2002 an exposure draft (ED) of a proposed International Financial Reporting Standard (IFRS),'Business Combinations' (ED 3). The new standard, when it [...]

The International Accounting Standards Board has a mandate to produce a single set of high quality, understandable, and enforceable global accounting standards and to encourage convergence on these standards. To [...]

This Special Accounting Issue of the Review of Business contains eight significant articles discussing recent important developments in financial accounting, reporting, auditing, and accounting education. The first article, Summary of [...]

The business combination project undertaken by the Financial Accounting Standards Board evoked a lot of controversy. This article overviews an extensive due process and political struggle which lead to Statement [...]

The year 2005 should be proclaimed 'The Year of International Financial Reporting Standards (IFRS).' Thousands upon thousands of companies around the world are getting ready to prepare their 2005 financial [...]

Accounting for insurance contracts varies widely throughout the world and is often inconsistent with accounting practices for other industries. The board of the former International Accounting Standards Committee (IASC) set [...]

In 2002 the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) pledged to make their existing financial reporting standards fully compatible as soon as practicable. Therefore, [...]

Listed companies in the European Union (EU) are due to use International Financial Reporting Standards (IFRS) (1) for consolidated financial statements from 2005. Companies can only apply IFRS if the [...]

The article reports on an accounting regulation approved by the Parliament and Council of the European Union (EU) in September, 2002. The regulation would require all EU-listed companies to follow International Financial Reporting Standards (IFRS) in their consolidated financial statements as of 2005. The compelling reason for the regulation was the need to develop an integrated financial services market in the EU.

In the 1990s, Poland's government faced a serious crisis of the social security system. It decided to undertake a radical step and partially privatised the system in 1999. The objective was twofold. First, privatisation will gradually shift the burden from the state to the private sector. Second, the new pension funds will become major institutional investors and facilitate further growth of the capital market. This paper overviews the pension reform undertaken in Poland, compares it with reforms introduced in other countries, and provides preliminary data on the market performance of open pension funds. Polish experience can be of interest to other governments and institutions currently involved in, or considering privatisation of their social security systems.