Qualitative Characteristics of Accounting Information in the Context of Convergence Towards a Joint Conceptual Framework

Author:PhD. Dan VILAIA, PhD student Alina PIETRARU, PhD student Ionela POPA

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Keywords:qualitative characteristics, conceptual frameworks, relevance, faithful representation

Abstract:
On May 29, 2008, both Boards published for public comment a preliminary views on the objective of financial reporting and the qualitative characteristics of decision-useful financial information. The boards were seeking comments from interested parties until 29 September 2008.\r\nThis paper examines the qualitative characteristics as presented by the existing frameworks. Both frameworks include similar principal qualities, but array them in a slightly different manner.\r\nIn this article there are also presented, in brief, the boards’ preliminary views on qualities of decision-useful financial reporting information, placed in a hierachy, illustrated using different diagrams. We also analyse the main changes to IASB and FASB existing frameworks. \r\nNevertheless, the new qualitative characteristics affirm much of the qualities identified by present frameworks. The proposed changes— primarily to clarify terminology and eliminate confusion—provide evidence that, at present, there is a real need only to converge different ways of expressing what are in essence the same concepts.\r\n

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