On Statement Of Principles For Financial Reporting Issued By Accounting Standards Board

Since 2003, the Professional Committee of Accounting Theory, which is subordinate to the Accounting Standards Committee of the Chinese Ministry of Finance, has begun to research into the development of the Conceptual Frameworks for Financial Accounting. The Professional Committee of Accounting Theory has set up many research groups and has planed to spend a year doing some research work and deliver a research report in the end, paving the way for drafting the Conceptual Frameworks for Financial Accounting in China. Under this background, I choose the Statement of Principles for Financial Reporting, which was issued by the Accounting Standards Board in 1999, as the research object of my dissertation and analyze the developing course of the Conceptual Frameworks for Financial Accounting in the UK, intending to benefit the development of the Conceptual Frameworks for Financial Accounting in China. The dissertation is divided into four sections. The first section in brief introduces the development of accounting standards and the accounting standards-setting body in the UK, and then focuses on the continuous endeavor to develop the Conceptual Frameworks for Financial Accounting and the major achievements in this course in the UK. The second section analyzes three major controversial issues in the course of developing the Conceptual Frameworks for Financial Accounting in the UK: the asset and liability view & the revenue and expense view, the historical cost & the current value, and the profit and loss account & the statement of total recognized gains and losses. The third section concretely explains how the Statement of Principle for Financial Reporting help the standards-setting body develop and evaluate accounting standards, by reference to the development and evaluation of "Reporting Financial Performance"and "Reporting the Substance of Transactions". The last section outlines some insight from the development of the Statement of Principles for Financial Reporting, and accordingly attempts to propose some suggestions in respect of developing the Conceptual Frameworks for Financial Accounting in China.