The ASB’s Statement of Principles

The ASB has been committed to the development of a Statement of Principles for Financial
Reporting since its formation in 1990. This was made clear in paragraph 4 of the ASB’s
Foreword to accounting standards, issued in June 1993:
FRSs (Financial Reporting Standards) are based upon the Statement of Principles for Financial



Reporting currently in issue, which addresses the concepts underlying the information presented in financial statements. The objective of this Statement of Principles is to provide a
framework for the consistent and logical formulation of individual accounting standards. The
framework also provides a basis on which others can exercise judgement in resolving
accounting issues.
Despite this brave statement, the Board managed to issue many FRSs before it published its
own Statement of Principles in December 1999.