Developing a Joint Globally Accepted Conceptual Framework Essay - 1

Developing a Joint Globally Accepted Conceptual Framework - Essay Example This essay stresses that the advantage with IASB conceptual framework is that of having a wider and broader purpose as opposed to the FASB framework. IASB places more emphasis on other purposes which include use of statements of finance and helping auditors while FASB theoretical framework seeks to place very little emphasis on these other purposes. This puts IASB framework in a much higher level in the GAAP order than the FASB framework’s GAAP hierarchy of the United States, also the status framework will reflect the difference in purpose. IASB framework is highly considered by those units that prepare statements of finance under IFRS where a specific standard is not applicable. This paper makes a conclusion that the FASB Statements of Concepts are ranked below articles, textbooks on accounting and handbooks under the United States GAAP. The FASB Concepts Statements are ranked no higher than accounting textbooks, handbooks, and articles, and below widely recognized and prevalent general or industry practices. Recent changes in U.S. law and regulation have removed responsibility for establishing the U.S. GAAP. FASB structure includes gains, losses, expenses, revenue and comprehensive income as the elements relating to financial performance while IASB has expenses ad income as its only elements. IASB defines an asset as a resource for drawing future economic benefits while FASB framework terms assets themselves as the economic benefits of the future a thing that puts IASB ahead of FASB.