The Financial Accounting Standards Board agreed at its August 29, 2007, meeting to advance several staff-backed portions of the first chapter of its Discussion Paper (DP), Preliminary Views on an Improved Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics of Decision-Useful Financial Reporting Information ( No. 1260-001 ). In particular, the FASB agreed to revise the objective of financial reporting as outlined in the DP to broaden its scope, and to reorganize the chapter to logically flow from the perspective of the entity that is reporting on its resources and the claims to those resources.
I've been a licensed CPA in the state of Michigan for almost 21 years now. I had to read this three times to even get an understanding.
So here goes: The FASB is best known for issuing difficult to understand and difficult to implement accounting standards. But it also does research, which in theory at least is a good thing. One long standing project has been to get a better understanding of what are the objectives of financial reporting.
Let's hope that when they figure that out they can communicate it in a way that is not difficult to understand or difficult to implement.