The paper offers an overview of the history of frameworks from standard-setting before the advent of frameworks to the present state of play in the IASB's project on the conceptual framework. The authors explain that the introduction of frameworks has a disciplining effect on standard-setters leading to improved consistency by providing them with a common frame of reference for their decision-making, but also to the fact that standard-setters can now be held accountable for their decisions. They have also given practitioners deeper understanding of standard-setters' decision-making and a fallback solution for issues not dealt with in standards.
However, to fulfil such an important role a framework must be complete and up-to-date, which, as the reactivation of the IASB's project has shown, is not the case with the current IASB Framework. In their paper, the authors list the areas where the framework is incomplete or needs revisions. They especially discuss the following areas which are mostly commonly agreed by constituents (and the IASB):
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Reporting entity,
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Definition of elements,
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Measurement of elements,
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Scope of financial reporting, and
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Presentation and disclosure.
Yet while identifying specific areas and even specific desirable qualities, the most urgent call of the paper is for the new framework to be aspirational and not just a confirmation of the status quo of standard-setting and of the current application of the standards.
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