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Using the Conceptual Framework

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The goal of the IASB and the FASB Framework convergence is to create a common conceptual framework of accounting standards. It is important to consider whether its development will meet the needs of users, Research the IASB and FASB frameworks and the Conceptual Framework Project.

Give an explanation of how the convergence and the Concept Framework Project impacts accountants. Explain at least one benefit and one drawback of the convergence of IASB and FASB.

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The convergence and Concept Framework Project impact accountants in several ways. The Concept Framework Project is a joint project of the FASB and the IASB to develop an improved common conceptual framework. This framework will provide the substratum for future accounting standards. These standards will be principles based standards. It is expected that the new accounting standards will be internally consistent, and internationally converged. In future the accountants will have to follow the new guidelines, and decisions of the Concept Framework Project.

By framework convergence we mean international convergence of accounting standards. The goal of ...

Solution Summary

This solution explains IASB and tFASB framework convergence. The sources used are also included in the solution.

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Ethics and the Conceptual Framework - Since the scandals of the late '90s, a discussion has taken place about principles-based and rules-based systems for accounting.

Since the scandals of the late '90s, a discussion has taken place about principles-based and rules-based systems for accounting. Many of the scandals involved issues where the organization technically may have met the rule while clearly violating the principle involved.

Please review the attachments:

Considering George Batavick's comments regarding principles-based accounting, prepare a 700-1,050 word paper in which you do the following:

a. Evaluate the conceptual framework developed by the Financial Accounting Standards Board (FASB)
b. Analyze the role and ethical considerations of judgment and decision making in accounting.
c. Take sides on whether principles-based accounting or rules-based accounting more adequately includes the role of ethics and fits best within the conceptual framework. In your paper, state the main arguments of each side, along with evidence to substantiate the arguments. You should conclude with a brief discussion of which side of the argument is stronger and why.

Book: Abdolmohammadi,(2002), Applied research and financial reporting, New York: McGraw-Hill.

Please show references and thank you in advance.

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