 Does the New Conceptual Framework Provide Adequate Concepts for Reporting Relevant Information about Performance?Arjan Brouwer, Arshia Faramarzi and Martin Hoogendoorn Accounting in Europe, 2014, vol. 11, issue 2, 235-257 Abstract: The basic question we raise in this paper is whether the 2013 Discussion Paper (DP 2013) on the Conceptual Framework provides adequate principles for reporting an entity's performance and what improvements could be made in the light of both user needs and evidence from academic literature. DP 2013 proposes to continue applying a balance sheet approach to financial accounting, whereby the income statement serves as a statement explaining changes in an entity's financial position. Performance is reduced to a discussion of possible approaches to defining other comprehensive income items and recycling. We conclude that the literature supports a more refined approach to communicating relevant attributes of performance, defining performance independently from assets and liabilities and taking into account various relevant disaggregations within profit or loss. We therefore propose a more balanced approach to financial reporting whereby the balance sheet and income statement are treated as equally important and the income statement gives more information about various relevant attributes of performance. Date: 2014 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:acceur:v:11:y:2014:i:2:p:235-257 Ordering information: This journal article can be ordered from DOI: 10.1080/17449480.2014.967788 Access Statistics for this article Accounting in Europe is currently edited by Lisa Evans More articles in Accounting in Europe from Taylor & Francis Journals |
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