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This commentary examines the significance of the FASB's conceptual framework on the accounting profession in the U.S.

June 15, 2026

Dale L. Gerboth on The Profession.

Key Points

This commentary examines the significance of the FASB's conceptual framework on the accounting profession in the U.S.
Analysis of the FASB's conceptual framework and its historical significance to accounting.
Discussion on the values upheld by FASB members related to accounting theory.
Examination of organizational dynamics affecting the FASB's composition and decision-making.
The FASB's conceptual framework has successfully served the accounting profession and business for years.
There is resistance among FASB members to changes that may challenge their established values.
The organization risks becoming homogeneous, prioritizing theoretical aspects of accounting over practical relevance.

Abstract

Abstract This article comments on the impact of the adoption of the Financial Accounting Standards Board's (FASB) conceptual framework to the accounting profession in the United States. According to the author, the accounting system as outlined in the FASB's conceptual framework is a good one. It has proved its worth in serving the profession and the business community for many years. Further, the members of the FASB have built their careers on a system reflecting values and beliefs that they are not prepared to see overturned. The message that accounting concepts can sometimes be irrelevant does not accord with those values and beliefs and is, for that reason, intolerable; the Board will not hear it. Simple organizational dynamics virtually guarantees that unless strong measures are taken to ensure otherwise, the FASB and its staff will be made up almost entirely of people whose careers have been built on mastery of the more theoretical aspects of accounting and who love accounting theory for its own sake.

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