Question

c) Evaluate the goals and objectives of:

i)The Conceptual Framework Project

ii)The Emerging Issues Task Force.

d) Analyse the standards overload problem

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i)The Conceptual Framework Project

Having a conceptual framework, gives a direction to the standard setting and it is not done in a haphazard manner.It is a coherent system of interrelated objectives which leads to the development of refined standards. Benefits of a conceptual framework include consistent and logical reporting, increased compazrability and economic development of accounting.

ii)The Emerging Issues Task Force.

The emrging issues task force issues a consensus position on the implementation of accounting standards. Accounting are standards are not exactly rigid in nature. Their application might change in reaction to the changing economy and varying conditions in different countries. The FASB seeks to provided updated guidelines about burning economic issues through the emerging issue task force.

d) Analyse the standards overload problem

Answer 1

1.The Conceptual Framework (or “Concepts Statements”) is a body of interrelated objectives and fundamentals. The objectives identify the goals and purposes of financial reporting and the fundamentals are the underlying concepts that help achieve those objectives. Those concepts provide guidance in selecting transactions, events and circumstances to be accounted for, how they should be recognized and measured, and how they should be summarized and reported.

2.The Emerging Issues Task Force (EITF) was formed in 1984 in response to the recommendations of the FASB’s task force on timely financial reporting guidance. objectives and goals of the EITF are to assist the FASB in making improvements in financial eporting through the timely identification and resolution of financial accounting issue.

EITF is intended to implement guidance within the framework of the Accounting Standards

Codification to reduce diversity in practice in a timely manner.