Joint Conceptual Framework
Response to the following problem:
The FASB and IASB are working on developing a common Conceptual Framework for Financial Reporting. To date, they have tentatively agreed on an objective of financial reporting. They have also identified two fundamental qualitative characteristics and several enhancing qualitative characteristics of decision-useful financial reporting information, as well as two constraints to these qualities.
Required
Define the objective of general purpose external financial reporting. Then discuss each of the fundamental and enhancing qualitative characteristics of decision-useful financial reporting information. Finish by discussing the two constraints to these qualities.