The International Accounting Standards Board (IASB) Conceptual Framework

Running head: AYB200 Financial Accounting Semester 1 2017
AYB200 Financial Accounting
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1AYB200 Financial Accounting Semester 1 2017
Joe Bloggs n01010101
Executive Summary
This report is about the Australian Accounting Standards Board (AASB) Conceptual
Framework and its compliance with the International Accounting Standards Board (IASB).
This report contains the latest developments made in the accounting standards of IASB
monitored by the technical team. The Conceptual Framework has been revised by the IASB
and the revised standards should be complied and approved by AASB for standardization of
the accounting standards being practiced in Australia. The first part of the following report
contains the overview of the key aspects of the concurrent AASB conceptual framework. In
this part discussion of the previous standards of IASB and proposed revision aspects are
mentioned which are to be introduced in the newer version of the conceptual framework.
It has been clearly denoted that which aspects needed to be revised and by which authority
and due to what reasons. The second part describes in summary the key changes made in the
revised IASB conceptual framework which is different from the AASB conceptual
framework. Point wise description is given of the accounting standards which were changed
and the reason of amendment. The third part of this report contains the position statement of
whether AASB should adopt the IASB framework in its current form and discussion was
done on the basis of “Sector-Neutral” Australian context.

2AYB200 Financial Accounting Semester 1 2017
Joe Bloggs n01010101
Table of Contents
Introduction................................................................................................................................3
Overview of the key aspects of the concurrent AASB Conceptual Framework........................4
Summary of the key changes in the revised IASB conceptual framework compared to the
AASB framework.......................................................................................................................4
Position statement of whether the AASB should adopt the IASB framework in its current
form based on assessment of its suitability for the “sector-neutral” Australian Context...........5
Conclusion..................................................................................................................................7
Reference....................................................................................................................................8
Appendix....................................................................................................................................9

3AYB200 Financial Accounting Semester 1 2017
Joe Bloggs n01010101
Introduction
Australian Accounting Standards Board (AASB) has made revisions in its Conceptual
Framework for presenting and preparing financial statements. The changes have been made
in the International Accounting Standards Board’s (IASB) Conceptual Framework for
Financial Reporting (Aasb.gov.au, 2017). In its Exposure Draft it is mentioned that he
changes were made to tackle some areas which are left without proper consideration of the
accounting standards. These areas may be measurement, presentation and disclosure,
reporting entity, financial performance and de-recognition. The changes in the revision are to
be discussed and commented by the experts in AASB to decide that whether the changes are
to be incorporated and complied or not and if accepted then for what reasons and on what
grounds. In the following report we will discuss the key points of the Conceptual Framework.