Comments sought on reporting entity concept
The International Accounting Standards Board
(IASB) and US Financial Accounting Standards Board (FASB) are
seeking comments on an exposure draft on the reporting entity
concept.
The proposal forms part of the boards’ joint
project to develop a common and improved conceptual framework,
which will provide the base for developing future accounting
standards.
The project has been separated into eight
phases, with the first four phases currently active.
The phases are:
- Objectives and qualitative characteristics
- Definitions of elements, recognition and
derecognition
- Measurement
- Reporting entity concept
- Boundaries of financial reporting, and Presentation and
Disclosure
- Purpose and status of the framework
- Application of the framework to not-for-profit
entities
- Remaining Issues, if any
The reporting entity phase will determine what
constitutes a reporting entity for the purposes of financial
reporting.
It will also define when an entity controls
another entity.
The exposure draft follows a discussion paper
published in May 2008.
The deadline for comments on the draft is 16
July.
Related links
IASB
FASB
Reporting entity
project