Business Accounting: Creation of a Constitution from a Framework

2838 Words11 Pages
Creation of a constitution from a framework Abstract This article aims at addressing an audience which is comprised of a board member and senior staff of the IASB, setters from the National Accounting Standards and the article is also meant to be published in the IASB website, where those in accounting and business can be critic to it. The paper will define what the framework for the preparation and presentation of financial statements is, and there will be intense discussion of the role of the framework. The framework's criticisms will also be focused on to clarify on the efficiency of a constitution. Inconsistencies and internal logical errors will be discussed, with regards to the conceptualization of an accounting constitution. Recommendations and suggestions will then be made based on the findings of research. Introduction The framework for the preparation and presentation of financial statements, also known as the framework, was approved by the board of the IASB in April, 1989. The framework was then published by the IASB in July, 1989. In the year 2001, the framework was adopted fully by IASB. The framework for the preparation and presentation of financial statements has the obligation to describe all the basic concepts that are to be adhered to in the preparation of financial statements. The framework is used by the IASB board to develop the necessary standards that are to be implemented for accounting purposes. The framework is also a guide to help in creating
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