What Is a Conceptual Framework and Why Is It Needed

Topics 1. 2. 3. 4. 5. 6. Conceptual framework– general. Objectives of financial reporting. Qualitative characteristics of accounting. Elements of financial statements. Basic assumptions. Basic principles: a. Measurement. b. Revenue recognition. c. Expense recognition. d. Full disclosure. Accounting principles– comprehensive. Constraints. Assumptions, principles, and constraints. 28, 29, 30 10 11 Questions 1, 7 2 3, 4, 5, 6, 8 9, 10, 11 12, 13, 14 15, 16, 17, 18 19, 20, 21, 22, 23 24 25, 26, 27 1, 2, 3, 4 6, 11, 13 5, 7 8, 9, 12 8 8, 12, 8, 12 1, 2 2, 3, 4 5 6, 7 6, 7 7 6, 7 6, 7, 8 9, 10 3, 6, 7 6, 7 12 5, 6 5, 6 5, 6, 7, 8, 9, 11 11 Brief

SFAC No. 8 addresses the cost constraint on useful financial reporting, “Cost is a pervasive constraint that standard setters, as well as providers and users of financial information, should keep in mind when considering the benefits of a financial reporting requirement.” (SFAC No. 8 BC 3.47) However, the ability to place a dollar value and fully enumerate a cost or benefit is almost an impossible task for standard-setters. Additionally, there is no way to successfully identify and measure all of the economic consequences associated with a new standard. The FASB should be applauded though for advancing uniformity in accounting standards, however; uniform financial reporting suggests a one size fits all approach. “Smaller, non-publicly listed firms (and their auditors) argue that accounting standards are formulated mainly for larger, publicly traded firms” and that “compliance costs are disproportionately higher and the

A conceptual framework has an important role for guiding nurses in providing care. This paper will compare

Financial Reporting Council: The Use of a Sector Neutral Framework for the Making of Australian Accounting Standards

Analysis of Various Financial Statement Users’ Attitudes and Recommendations for the FASB’s Proposed Accounting Standards Update

The conceptual framework for financial reporting is not an accounting standard but it has been developed by the International Accounting Standards Board (IASB) for the preparation and presentation of financial statements for external users. It assists in the development of future international reporting standards and the review of existing standards. If there is a conflict between the Framework and IFRS, the IFRS view will be implemented.

This case study analysis provides information obtained from Mainfreight Limited (MFT), regarding the presentation and disclosure of information in the financial statements, the accompanying notes and accounting policies of MFT Ltd for the year 2014. This essay will pay specific interest to the application of the conceptual framework of accounting to the relevant Accounting Standards (NZ IAS 1, NZ IAS 7, NZ IAS 8 and NZ IAS 10). The report will comment on why it is essential to regulate external financial reporting by Mainfreight. The second part will discuss the role of conceptual framework to accounting standards in external financial reporting in New Zealand. Thirdly, analyze the relevant accounting standards prescribe to the presentation and disclosure of information in the Statement of Changes in Equity. Fourthly, the extent of application of management judgement for the estimates for items disclosed to Mainfreight financial statements. Lastly, comment on some issues that ascend from application of management judgements in which, items are disclosed in the financial statements.

guidance” (SFAC 8). In other words, the SFAC attempt to organize a framework that can

The Accounting profession has its fiduciary duty to deliver the information and make correct decisions. To support the high quality of information accounting standards constantly faces difficulty to keep the framework up to date. In the recent global financial crisis fair value has come under the light of examination. Some critics have blamed the global financial crisis on market to market accounting (fair value accounting). I must say fair value increase firms transparency. Subsequently, through this rule, the obligation of the accounting mention above is further completed: financial specialists are getting essential data on which they make their

Accounting is the language of business and it is used to communicate financial information. In order for that information to make sense, accounting is based on 12

This hierarchy plays a major role in the effectiveness of accounting information. It is important to use the qualities of accounting information to assess which is best suited for various circumstances. Determining which alternatives provides the most useful information for decision-making purposes, will help decide accounting methods, amounts, types of disclosures, and formats. FASB assists accountants by identifying the qualitative characteristics of accounting information that distinguish relevancy of accounting information for decision-making purposes. Restraints, are also, a part of the framework consisting mostly of cost-benefit and materiality. A simple comprehension remembrance is that the qualitative information has three levels. The first level deals with the objective

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.

Bullen and Crook in their article, Revisiting the Concepts (2005), discussed the nature of the new conceptual Framework project. They said the FASB and IASB began this project to “revisit their conceptual frameworks for financial accounting and reporting.” In other words, the project will result in an improved, complete and consistent conceptual framework as a new guidance for future standard-setting.

The paper then evaluates International Accounting Standards Board’s (IASB) attempts to develop a conceptual framework and the current state. In the final section I will discuss and reflect upon the evidence presented to support the topic of this essay along with a conclusion of facts and ideas presented.

Firstly, the purpose and role of the conceptual framework is a set of tools used to assist the IASB in developing and revising existing IFRS in order to adapt to various situation.(Brower.A,2015). Moreover it also has to promote harmonisation of regulation, accounting standard and procedures relating to presentation of financial statement in order to reduce the number of alternative accounting treatments. Additional other than helping the IASB it also have to inform interest party of the IASB with information about how it works and the formulation of