We provide survey evidence of chartered accountants' perspectives on the proposed conceptual framework of the International Accounting Standards Board. Our survey obtains their views on the changes in the definitions of assets and liabilities, recognition criterion, and additional guidance in these areas, as well as issues relating to other comprehensive income, business model-based accounting, and choice of measurement basis. Our field evidence suggests broad consensus with respect to most of these changes. The areas that generate the most disagreement among our respondents relate to the removal of economic benefits in the proposed asset definition, the proposal to remove the minimum probability threshold from the asset recognition criterion, and the use of fair value as a measurement basis for certain difficult to measure assets. Overall, our results provide interesting insights regarding how chartered accountants view the proposed conceptual framework.
Conceptual Framework, Fair value accounting, Other comprehensive income
Accounting | Corporate Finance
Corporate Reporting and Disclosure
Advances in Accounting
OW YONG, Kevin; LIM, Chu Yeong; and TAN, Pearl Hock-Neo.
Theory and practice of the proposed conceptual framework: Evidence from the field. (2016). Advances in Accounting. 35, 62-74. Research Collection School Of Accountancy.
Available at: http://ink.library.smu.edu.sg/soa_research/1543
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.