Research On The Qualitative Characteristics Of Accounting Information In The FASB/IASB Common Conceptual Framework

The FASB and IASB common conceptual framework project has began in2004,which comprises totally8phases and A phase “Objective and Qualitativecharacteristics” has launched the final document in2010. The top priority is that weuse scientific methods to analyze and understand these changes, for example, whatimpact does it impose on the quality of accounting information that the qualitativecharacteristics has been distinguished the fundamental qualitative characteristics andenhancing qualitative characteristics？Whether does it is useful to raise the quality ofaccounting information that timeliness has been removed from Relevance,verifiability has been removed from Reliability, and they have been lowered to theenhancing qualitative characteristics？What impact does it impose on the accountingpractice that logical order of the fundamental qualitative characteristics has beendefined as relevance over faithful representation? What is the aim that reliability hasbeen replaced with “Faithful representation”? What impact does it impose on thequality of accounting information that the relationship between comparability andconsistency has been definitely defined?Based on the deep analysis of the qualitative characteristics of accountinginformation in FASB/IASB common conceptual framework, this paper attempts toanswer these questions. When every qualitative characteristic or concept has beenanalyzed, this paper follow the following order:(1) review and analysis: the typicalperspectives of every qualitative characteristic or concept has been reviewed, and theunsolved problems have been pointed out.(2) the changes in the common conceptualframework have been introduced, analyzed and reviewed briefly. Based on the aboveanalyses, this paper believes, some changes, such changes the qualitativecharacteristics has been distinguished the fundamental qualitative characteristics andenhancing qualitative characteristics, Timeliness has been removed from Relevance,verifiability has been removed from Reliability, and they have been lowered to theenhancing qualitative characteristics, are positive and are useful to raise the quality ofaccounting information. But, the two changes that relevance is superior to faithfulrepresentation in the logical order and reliability has been replaced with “Faithful representation” may lower the quality of accounting information. This paper analyzethese two changes more deeply.In the Forth chapter, this paper establishes the utility function of accountinginformation users, employs the economic analytic methods, and concludes that thelogical order of relevance over faithful representation defined by the commonconceptual framework may lower “utility” of the accounting information users, evenleads to mislead.In the Fifth chapter, this paper analyzes the impact of the qualitativecharacteristics of accounting information on the measurement attributes, employs thepositive research, and concludes that it may induce company management to use moresubjective measurements such as present value of future cash flow, and thus lower thequality of accounting information.Based on the above analyses, this paper argues that China should take theprudent attitude towards the new changes of qualitative characteristics of accountinginformation in the common conceptual framework. We should take full considerationinto our circumstance, actively and steadily cope with this change on the principle of“convergence” rather than “bigotry”,“actively pay attention” rather than “copy”.Currently, the convergence of the international accounting standards is at thecrucial period. The new changes in the qualitative characteristics of accountinginformation of the common conceptual framework has been certain to significantlyaffect the conceptual framework and accounting standards of China. Thus, it hassignificant theoretical and realistic meaning that we deeply analyze and scientificallyevaluate the qualitative characteristics of accounting information in the commonconceptual framework, and then provide the valuable policy suggestion to ourconvergence of the conceptual framework.