Convergent Evolution in Accounting Conceptual Framework: Barker and Penman (2016) and ASBJ (2006)

Abstract

Criticizing the IASB’s Conceptual Framework project based on the balance sheet approach, Barker and Penman (2016) have been advocating a mixed balance sheet and income statement approach. Although they do not seem to have noticed, their approach is quite similar to that of the Japanese accounting standard setter promulgated in ASBJ (2006). We will explicate the basic similarity as well as some differences between these two approaches.