IASB Conceptual Framework

1099 Words5 Pages
Hans Hoogervorst
IASB Chairman
London, UK
Date: Nov 11, 2017

Dear Sir,
I am writing this report in order to outline one change that I believe needs to be made to the Conceptual Framework. I have attached the report that details the change and the rationale for the change for your kind consideration.

Thanking You,

Your Name,
Name of University
Course Name

The IASB conceptual framework is a framework of theories prepared by a standard setting body aimed t dealing with practical problems faced by users of financial statements; the characteristics of accounting information; the elements of financial statements and concepts for measuring and reporting the elements such as assets and liabilities (Financial Times 2017). The benefit is that uniform accounting standards can be applied to deal with common accounting problems; have fewer standards to reduce the volume of standards; help accountants and auditors to resolve accounting issues. However one of the issues is the going concern assumption, which does not appear to take into account more serious risks that an enterprise may be associated with such as sustainability risks.

The problem/Change
One of the problems with the conceptual framework is that it does not address the principle of sustainability within its going concern assumption even in the recent Summary of Tentative Decisions related to the framework (IFRS 2017). Therefore it is proposed that the conceptual framework
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