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Revisiting the Concepts: Time to Challenge the Asset‐Liability View
Author(s) -
Kvifte Steinar Sars
Publication year - 2008
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.2008.0008.x
Subject(s) - liability , asset (computer security) , business , accounting , conceptual framework , actuarial science , computer science , sociology , computer security , social science
The IASB and the FASB are in a joint project to update, complete and converge their conceptual frameworks. The two standard‐setters have not identified the merits of the asset‐liability view as a cross‐cutting issue. This paper suggests that the relationship between the objective of financial reporting and the asset‐liability view is not substantiated, and that there is little evidence that the frameworks and the asset and liability definitions have been useful in establishing objective recognition criteria. Hence, there are reasons for the FASB and the IASB to challenge the asset‐liability view.