ICAS and the International Federation of Accountants (IFAC) have published a joint paper looking at the theoretical and practical issues raised by the work the International Accounting Standards Board (IASB) is undertaking in its revision of the Conceptual Framework, which is the foundation of International Financial Reporting Standards (IFRS).

ICAS CEO, Anton Colella, said: 'The Conceptual Framework sets the direction of travel for financial reporting globally. The IASB has stated that it will focus on "updating, improving and filling in gaps" of the current Framework. Our overarching question is: is this sufficient or do we need a more fundamental re-think?'

The publication, Do We Need a Roadmap for Financial Reporting, is intended to complement the individual comment letters that both bodies have already submitted to the IASB in response to the consultation on its discussion paper on making changes to the framework, which was released in July 2013.

The paper raises a number of fundamental questions and issues, in the view of IFAC and ICAS and sets out what they believe the IASB should consider when revising its approach. These include who financial statements are for; what is their purpose; what role should the Conceptual Framework serve; what items should be included in assets and liabilities; and what does 'financial performance' mean.

Fayez Choudhury, CEO of IFAC, said: 'These questions get right to the heart of how companies communicate with the financial markets. The basic building blocks of financial statements have existed for decades and it is important to undertake a serious assessment of whether they remain fit for purpose.'

The paper does not contain answers to all of questions, but ICAS and IFAC say the aim is to stimulate the debate and encourage those with a stake in financial reporting to engage and assist the IASB with its work in this area.

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