Over the years, various organizations, committees, and individuals, has develop theconceptual framework as well as publish their own. But there is no framework of a universally accepted and reliable in practice.
Recognizing the need for a framework that can be commonly accepted,
In 1976 the FASB issued a Discussion momerandum Conseptual three parts, entitledFramework for Financial Accounting and Reporting: Elements of Financial Statementsand Their Measurement. Since the document is published, the FASB has issued six Statements of Financial Accounting Concepts relating to the business entity's financialreporting, namely:
1. SFAC No.. 1, "Objectives of Financial Reporting by Business Enterprises," which presents the goals and objectives of accounting.
2. SFAC No.. 2, "Qualitative Characteristics of Accounting Information," which describesthe characteristics that make accounting information useful.
3. SFAC No.. 3, "Elements of Financial Statements of Business Enterprises," which provides definitions of the items contained in the financial statements, such as assets,liabilities, revenues and expenses.
4. SFAC No.. 5, "Recognition and Measurement in Financial Statements of BusinessEnterprises," which sets the fundamental recognition and measurement of performance as well as guidance on what information should normally be included in the financial statements and when.
5. SFAC No.. 6, "Elements of Financial Statements," which replaces SFAC No.. 3 by inserting a non-profit organizations.
6. SFAC No.. 7, "Using Cash Flow Information and Present Value in Accounting Measurements," which provides a framework for using future cash flows and the expectedpresent value (present value) as a basis for measurement.