The new generation of the FASBs Conceptual Framework

Purpose: The article presents and comments on the main structures, key approaches, and content of the new conceptual framework promulgated by the Financial Accounting Standards Board (FASB) in December 2021.Methodology/approach: Descriptive-analytical and content analysis.Findings: After presenting the modernization of FASBs conceptual approach towards financial reporting, the article presents the results of this modernization. It shows how the primary users have been redefined and it also describes the quality and constitutive elements of financial statements, how the components of these elements are measured, and the principles for shaping general purpose financial reporting. The article points out important differences between the FASB Framework 2021 and the IFRS/IASB Framework 2018 regarding the definition of a reporting entity, the types of financial statements, the number and type of elements of the financial statements, the definition of assets, and the quality of financial information in the notes to the financial statements.Practical implications: FASB modernized approach verifies and develops the conceptual frameworks as a financial reporting theory. It confirms their role as the basis for the standard-setting function, and interpreting standards and financial statements. In this way, the general level of distrust towards financial reporting relevancy and reliability may be reduced, increasing the opportunities to use the new FASB framework for a broadened and deepened interpretation of Polish financial reporting and auditing regulations and practice. As a result, it allows them to be better shaped and taught, and it provides a more informed direction for research.Originality/value: This paper is probably the first public presentation in Polish of the ideas of the new FASB conceptual framework for financial reporting.