In July, the International Accounting Standards Board issued a discussion paper entitled “A Review of the Conceptual Framework for Financial Reporting” as part of its project to revise the conceptual framework that guides the development of IASB’s standards. The project could have a significant impact on future IASB standards, which would be important given the widespread use of International Financial Reporting Standards by non-U.S. companies and the substantial allocation of U.S. investment portfolios to securities issued by them.
It could also be important to U.S. investors and companies as the Financial Accounting Standards Board continues to seek convergence between U.S. Generally Accepted Accounting Principles and IFRS, especially if the SEC decides on potential “incorporation” of IFRS into U.S. GAAP.
