The New Conceptual Framework for Financial Reporting 2010: Some Reflective Comments

Abstract

A new Conceptual Framework for Financial Reporting, although in an incomplete shape, has been issued by the International Accounting Standards Board (IASB) in September 2010. Having a status of the constitution of a standard-setting body, this Conceptual Framework (CF) states the fundamental concepts in which the standards are rooted and that underlie the preparation of financial reports. This CF is to be used as a guide for developing future standards and reviewing existing standards. Due to a number of revised or new issues and as a component of authoritative guidance of the JASB in the absence of any standards or interpretations, this CF is of high importance for all the stakeholders of accounting and financial reporting. Since June 2008, the reporting framework as well as IFRSs (International Financial Reporting Standards) issued by the IASB are mandatory for a listed company in Bangladesh, the CF has also significant compliance implications. This paper has provided a comparative analysis of the new CF (2010) and the preceding Framework (1989) of the IASB to grasp the extent of revisions. The paper has also analytically reviewed the new CF with some reflective implications towards future direction of financial reporting.