Commentary: Accounting Literature, The Conceptual Framework

There are at least 2 broad objectives of the Financial Accounting Standards Board's (FASB) Conceptual Framework project. These include: 1. to further the development of future accounting standards by establishing a guide or constitution for financial reporting, and 2. to help others to better understand the process of financial reporting. While the first objective, the developmental role, has drawn much criticism, little has been written about its educational role. When evaluated from this standpoint, the Conceptual Framework has both good and bad points. It is long, verbose, poorly organized, and therefore, hard to read. However, comment letters received on the project are more focused on the relevant issues, and it appears that understanding the process of financial reporting has improved during the time the project has been on the FASB's agenda. The framework will definitely influence accounting education and could have a negative influence on the curriculum because of the way it is presented.