Q2.docx - 2 Why is it important that the IASB and FASR share a common conceptual framework A common conceptual framework means that IASB and FASB will

Q2.docx - 2 Why is it important that the IASB and FASR...

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2. Why is it important that the IASB and FASR share a common conceptual framework? A common conceptual framework means that IASB and FASB will work towards making their standards be similar in a way. They will combine their standards and make standards that will be applicable globally for users from all over the world. The converged framework between FASB and IASB should be in a form of a single document including summaries and basis for conclusions on given aspects. Combining these standards into one has some benefits to both IASB and FASB. The importance of sharing a common conceptual framework between FASB and IASB may include: a. Proper Decision-Making Relatively, these decisions will not be made at a personal level but at the levels of both FASB and IASB, this means both the parties will participate actively towards these. Decision making therefore, is proper and well designed as each one of the parties is a participant. Therefore, on making
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