Its overall objective is to create a sound foundation for future accounting standards that are principles-based, internally consistent and internationally converged. Therefore the IASB and the US FASB (the boards) are undertaking the project jointly.
Project History
Stage 1: Setting the agenda
The IASB added this project to its agenda in October 2004.
Stage 2: Project Planning
The project is being conducted jointly with the US FASB.
The boards consult with their advisory councils for advice on broad strategic issues in the project.
Project plans are updated, reviewed, and approved periodically, generally at the boards’ individual technical planning meetings and their joint meetings.
Stage 3: Development and publication of a discussion paper or an exposure draft
The boards published for comment an exposure draft for the Objectives and Qualitative Characteristics (Phase A ) on 29 May 2008.The exposure draft was a result of consideration of comments received from interested parties on a discussion paper published in July 2006.
The boards also issued a discussion paper for The Reporting Entity (Phase D) on 29 May 2008, which led the boards to publish an exposure draft on 11 March 2010. Comments are due 16 July 2010.
The boards also anticipate publishing from the following documents in 2010:
Project Completion:
At the October 2006 joint IASB/FASB meeting, the boards agreed that each board, within the context of its current GAAP hierarchy, will finalise the common framework as parts (chapters) are completed, and noted that later parts may include consequential amendments to earlier parts.
The boards noted that the decision of how to finalise the joint framework may need to be readdressed when the boards discuss the placement of the framework within the IASB and FASB hierarchies.
Timetables for two inactive phases (E and F) are to be established.