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Changing the Concepts to Justify the Standards *
Author(s) -
O'brien Patricia C.
Publication year - 2009
Publication title -
accounting perspectives
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.238
H-Index - 17
eISSN - 1911-3838
pISSN - 1911-382X
DOI - 10.1506/ap.8.4.1
Subject(s) - demotion , accounting , valuation (finance) , salience (neuroscience) , conceptual framework , business , economics , computer science , management , sociology , social science , artificial intelligence , human resources
In this paper, I discuss the current project to converge the IASB and FASB conceptual frameworks, specifically efforts to purge the converged framework of concepts that hinder the promotion of balance sheet valuation using fair values. I discuss why I believe these efforts to be misguided, based on how investors who analyze financial statements employ accounting information. I focus on stewardship, reliability, and earnings — terms either demoted in importance or at risk of being eliminated in the framework convergence project. I explain their salience to financial statement users and argue against their deletion or demotion.