We have been writing about the Financial Accounting Standards Board's Conceptual Framework, offering suggestions to the board as it fixes up the framework some 20 years after it was produced.

So far, we have looked at the overall goal of standard setting, the objective for financial reporting, the relevance of the future cash flows to the reporting entity, and the role played by the entity's assets and liabilities through their ability to affect the amount, timing and uncertainty of those cash flows. We are persuaded that this ability, which we call "AAATUC" for convenience, is the elusive relevant attribute that escaped the grasp of accounting theorists for decades.

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