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The IASB issued a Discussion Paper exploring possible changes to the IASB’s Conceptual Framework for Financial Reporting in July 2013. The comment period ended on January 14, 2014 and an exposure draft is expected to be published later this year. The IFAC/ICAS paper has been prepared to complement the individual comment letters that both IFAC and ICAS submitted to the IASB.
In the paper, IFAC and ICAS raise some fundamental questions and issues that should be considered by the IASB, including:
“These questions get right to the heart of how companies communicate with the financial markets", said Fayez Choudhury, CEO of IFAC. “The basic building blocks of financial statements have existed for decades and it is important to undertake a serious assessment of whether they remain fit for purpose.”
Anton Colella, CEO of ICAS, said: “The Conceptual Framework sets the direction of travel for financial reporting globally. The IASB has stated that it will focus on ‘updating, improving and filling in gaps’ of the current Framework. Our overarching question is: is this sufficient or do we need a more fundamental re-think?”
The paper does not contain answers to all of these difficult questions, but aims to stimulate the debate and encourage those with a stake in financial reporting to engage and assist the IASB with its endeavour.