7.31 Archives - Standards Michigan

Conceptual Framework for Financial Reporting

“Barrels of Money” 1897 Victor Dubreuil

We have followed Financial Accounting Standards Board catalog of best practice titles for several years now. The FASB has a solid standards development enterprise that gets picked up in our algorithm and, for the moment, we simply pass along its live public consultation notices to the education community. Administrative burden is often cited as an explanation for the rising costs of education so, to that extent, we have an interest in the FASB and GASB best practice literature.

From the project prospectus:

The Conceptual Framework establishes the concepts that underlie financial reporting. The Conceptual Framework is a coherent system of concepts that flow from the objective of financial reporting. The concepts address the selection of transactions, events, and circumstances to be represented and of items that meet the definitions of elements of financial statements; how those items should be recognized, measured, and disclosed; and how they should be summarized and presented in financial statements.

You will be asked to conform to FASB’s requirements for public comment.

Proposed Statement of Financial Accounting Concepts

Consultation closes November 13th.

We encourage user-interests in the administrative branches of educational organizations to collaborate directly with the FASB and its related unit, the Government Accounting Standards Board. The user-interest in academia may be a grant seeking enterprise, or a research project that must undergo periodic audits. It seems likely that FASB/GASB products ought to be part of an academic curriculum.

We maintain the FASB/GASB bibliography on the standing agenda of our periodic Finance teleconferences. See our CALENDAR for the next online meeting.