FRC highlights importance of IASB Discussion Paper on its Conceptual Framework
News types: Policies and Responsibilities, Policy Statements, Response, Statements
Published: 18 July 2013
The FRC welcomes the publication by the International Accounting Standards Board (IASB) of its Discussion Paper on a new version of its Conceptual Framework, which provides the fundamental basis for development of International Financial Reporting Standards (IFRS). This Discussion Paper offers a once-in-a-generation opportunity for investors and directors to have an input into the direction of financial reporting standards for UK listed companies. The current Framework, much of which dates from the 1980s, is incomplete and out of date. The Discussion Paper includes new suggestions on: the reporting of financial performance, the measurement of assets and liabilities and presentation and disclosure. The FRC believes that any review should consider whether adequate emphasis is given to key principles of financial reporting including accountability, reliability and the exercise of caution.
Commenting on the publication, Roger Marshall, FRC Board member and Chairman of the FRC’s Accounting Council said:
“The importance of getting the fundamentals of financial reporting right cannot be underestimated. It is vital that IASB develops a Framework so that future accounting standards ensure that management can provide their investors with the information they need, in a way that is readily understandable. This is a moment when everyone can have their say in how the future is shaped."
To facilitate the debate the FRC, in conjunction with European partners, has published for comment a number of Bulletins that address particular issues that arise in the context of the Framework. The FRC will also be organising events to enable views to be expressed.
FRC will be responding to the Discussion Paper in line with the IASB’s timetable by 14 January 2014, taking input and advice from its outreach and advisory councils.
Notes to editors:
- The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.
- For more information on the FRC’s stance on the IASB’s Conceptual Framework you can refer to the following article by Roger Marshall.
- Those interested in participating in FRC events to discuss the Discussion Paper are invited to contact Andrew Lennard on [email protected].