During the past several years, the Financial Accounting Standards Board has attempted to strengthen the theoretical foundation for the development of accounting principles. Two of the most important results of this attempt are the Conceptual Framework Project and the Emerging Issues Task Force. During this same period, the FASB has been criticized for imposing too many standards on the financial reporting process, the so-called standards overload problem.
a. Discuss the goals and objectives of
i. The Conceptual Framework Project
ii. The Emerging Issues Task Force
b. Discuss the standards overload problem.
First, the conceptual framework was introduced by the Financial Accounting Standards Board to correct some of the issues and situations which resulted to the "erosion of the credibility of financial reporting" (Riahi-Belkaoui, 2004, p. 173). Some of these issues and situations are "[two] or more methods of accounting are accepted for the same facts" (Riahi-Belkaoui, 2004, p. 173) and "[less] conservative accounting methods are being used rather than the earlier, more conservative methods" (Riahi-Belkaoui, 2004, p. 173).
Second, according to the Scope and Implementation of the Conceptual Framework Project, the conceptual framework is defined as "a constitution, a coherent system of inter-related objectives and fundamentals that can lead to ...
This solution of 417 words discusses goals and the overload problem in the theoretical foundation of accounting principles. References used are included.