Case Teori Akuntansi (Godfrey)

Case 4.3 nomer 3 dan 4 3. We consider consider that that conceptual conceptual framewo framework, rk, in the the end, end, is importan importantt to all parties. parties. At first first upon upon comple completio tion n of the improv improved, ed, conver converged ged framewo framework, rk, some some existing FASB and IASB financial reporting standards inevitably will conflict with the concepts. concepts. That also is the case today: for a variety variety of reasons, reasons, some current standards conflict with the current concepts. Such conflicts will not result result in immedi immediate ate change changess to those those account accounting ing standar standards, ds, because because both both Boards’ standards have hierarchical priority over concepts in their application to financial reporting. The Boards likely will continue to give priority to standa standards rds.. Howeve However, r, as new, new, conver converged ged,, princi principle ples-ba s-based sed standar standards ds are developed based on the improved, converged concepts, conflicts between standa standards rds and concep concepts ts will will become become infreq infrequen uent. t. The projec projectt will will help help in resolving critical accounting standards issues, both while it progresses and when it reaches fruition in a single, refined, updated, completed framework  underlying consistent principles-based standards that promote decision which useful financial reporting. 4. Cross-cutting issue is a problem that affects a number of their projects for new or revised standards.

 Now that the cross-cutting issues have been identified, they will be prioritized. That  prioritization will establish the detailed work plan for the project. One consideration will be how frequently and how soon those issues would be likely to arise in standards-level  projects. Another consideration will be the interdependencies between cross-cutting issues, so that higher priority would be assigned to issues on which the resolution of other issues depend. Still another consideration in setting priorities will be whether resolving the issue would foster convergence of the FASB’s and IASB’s frameworks.