Accounting Magazine

Summary

Exposure draft on conceptual framework issued jointly by IASB and FASB adopts the entity perspective and the group reporting entity approach, attaches importance to balance sheet information based on the asset-liability view, and treats reliability and verifiability so lightly. These characteristics seem to be emphasized for the extension of fair value measurements. However, it is difficult to see how fair value accounting solves the problems with historical cost accounting which still has many merits for providing the decision useful information.