Conceptual Framework: Discussion Paper Issued

In December 2006, the ASBJ agreed to issue Discussion Paper on Conceptual Framework.

Many have asked what is conceptual framework in Japan. The Paper states that it enhance communication with standard-setters in the world.
The Paper has contents similar to IASB/FASB conceptual framework: objectives of financial reporting; characteristics of accounting information; elements of financial statements; and recognition and measurement in fiancial statements.
The Paper is an exposure document, because the IASB and the FASB are now reviewing their concept statements toward setting a common set of framework and the ASBJ intends to continue its discussion on the conceptual issues.

I will discuss the Paper in detail here.