The Financial Accounting Standards Board and the International Accounting Standards Board have published the first draft chapters of a document laying out their views for an enhanced conceptual framework.

The draft chapters define the objective of financial reporting and the qualitative characteristics of decision-useful financial information. The boards are now seeking public comment on their work.

The chapters are the first published work to be released out of a program announced in February. Both boards are looking to update their own individual frameworks, and believe that a common conceptual framework will improve the foundation and concepts that underlie global financial reporting and serve as a more effective guide in developing global financial reporting standards.

"A common goal of the boards and our constituents is for standards to be based on consistent principles rooted in fundamental concepts, rather than a collection of conventions, " said FASB member Michael Crooch, in a statement. " To achieve this, the boards need to affirm even the most basic building blocks of financial reporting, from which all other concepts will flow, in this case, what is financial information intended to do?"

Comments on the preliminary views are due by Nov. 3. The draft chapters, "Preliminary Views on an Improved Conceptual Framework for Financial Reporting: The Objective of Financial Reporting and Qualitative Characteristics of Decision-Useful Financial Reporting Information," are now available on FASB's Web site at www.fasb.org/draft/pv&ic_ed.shtml.

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