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The Finanical Accounting Standards Board (FASB) in
the US initiated in 1973 a conceptual framework for
financial reporting project. The International
Accounting Standards Committee (IASC) issued a
similar framework in 1989. The conceptual framworks
was a response to a general demand for cohesive
accounting theory and a vehicle for setting
conceptually consistent accounting standards. To
reach this objective, the FASB and the IASB believed
that the asset-liability view would be a better
basis than the the traditional revenue-expense
approach. In the book, the author explores the
conceptual differences between the two views,
whether the asset-liability view is in fact useful
in standard setting, and whether the asset-liability
view is a better basis for providing decision useful
information to the users of financial reports.
the US initiated in 1973 a conceptual framework for
financial reporting project. The International
Accounting Standards Committee (IASC) issued a
similar framework in 1989. The conceptual framworks
was a response to a general demand for cohesive
accounting theory and a vehicle for setting
conceptually consistent accounting standards. To
reach this objective, the FASB and the IASB believed
that the asset-liability view would be a better
basis than the the traditional revenue-expense
approach. In the book, the author explores the
conceptual differences between the two views,
whether the asset-liability view is in fact useful
in standard setting, and whether the asset-liability
view is a better basis for providing decision useful
information to the users of financial reports.