Whether IASB should reopen controversial issues in Chapter 1 and Chapter 3
The revision of the conceptual framework influences the controversial issues in the chapter one and chapter three about whether IASB should increase the status of stewardship or accountability, replace reliability into faithfully representation and remove the word ‘prudence’ which is one of the core quality principles in the previous conceptual framework. This essay is going to consider those three controversies to answer three question – the nature of the controversies, the reasonability of the IASB’s feedback against the criticisms and the solution towards the controversies.
II. The controversial issues
The answer to the question about the nature and the function of the company financial report has been attempted to be answered over the years. According to Alexander (2011), the conceptual framework for financial reporting (Conceptual framework) is defined as a scheme of systematic thinking which provide not only the definition but also the solution to accounting issues. Meanwhile, it is seen as a tool of help standard setter (IASB) to develop and revise reporting standards. It is a reference to prevent standard setter from confusion like fire fighting while they face accounting questions, for example if some item can be defined as asset. In fact, the status of the conceptual framework is higher than the specific standard and more precisely, it is seen as a guidance for