Conceptual Framework : FASB and IASB, It’s Joint ProjectLIZI VIRMA SURIANTIRIRI OCTAVIA

CONCEPTUAL FRAMEWORK

ISSUE

ROLE

OBJECTIVES

CHARACTERISTIC

MODEL

CONCEPTUAL FRAMEWORK

CF

CONSISTENT STANDARD OF F/R

The Principles

• Information quality vs information transparency

• Timing vs timeliness of information

• Permanent vs transitory performance measures

• Value vs price

Principles underlying the construction of information set

• Recognition and Measurement Rest on Interpreting Transaction

• Operating Activities separate from financial activities

• The Centrality of operating earning measurement

• Balance sheet conservatism• Owners’s equity accounting

rest on a proprietorship perspective

Arguments Supporting the 5

Principles

CRITISM

1. Rob Bloomfields

2. Ted Christensen

3. Ross Watts

1. Transaction –Based Accounting

2. Operating vs Financial Activities

3. The Centrality of Income Statement and Earning Measurement

4. Conservatism 5. Proprietorship

Perspective