Conceptual Framework

1. Conceptual Framework : FASB and IASB,
It’s Joint Project
LIZI VIRMA SURIANTI
RIRI OCTAVIA

2. CONCEPTUAL
FRAMEWORK
ISSUE
ROLE
OBJECTIVES
CHARACTERISTIC
MODEL
CONCEPTUAL
FRAMEWORK

3. C
F
CONSISTENT STANDARD OF F/R

4. The Principles
• Information quality vs
information transparency
• Timing vs timeliness of
information
• Permanent vs transitory
performance measures
• Value vs price
Principles underlying the construction of
information set
• Recognition and Measurement
Rest on Interpreting
Transaction
• Operating Activities separate
from financial activities
• The Centrality of operating
earning measurement
• Balance sheet conservatism
• Owners’s equity accounting
rest on a proprietorship
perspective

6. Arguments
Supporting the 5
Principles
CRITISM
1. Rob Bloomfields
2. Ted Christensen
3. Ross Watts
1. Transaction –
Based Accounting
2. Operating vs
Financial Activities
3. The Centrality of
Income Statement
and Earning
Measurement
4. Conservatism
5. Proprietorship
Perspective