What is the authoritative status of the Conceptual Framework?The Framework applies when FRSC develops new or revised Standards. An enterprise is never required to consider the framework.It has the highest level of authority. In case of a conflict between the Framework and s Standard or Interpretation, the Framework overrides the Standard orIf there is a Standard or Interpretation that specifically applies to a transaction, it overrides the Framework. In the absence of a Standard or an Interpretation that specifically applies, the Framework should be followed.If there is a Standard or Interpretation that specifically applies to a transaction, management should consider the applicability of the Framework in developing and applying an accounting policy which results in information that is relevant and reliable

The Conceptual Framework's main goals are to help users of financial reports comprehend the data in…

Answered: What is the authoritative status of the…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter2: The Accounting Information System

Section: Chapter Questions

Problem 1MCQ

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What is the authoritative status of the Conceptual Framework?
1. The Framework applies when FRSC develops new or revised Standards. An enterprise is never required to consider the framework.
2. It has the highest level of authority. In case of a conflict between the Framework and s Standard or Interpretation, the Framework overrides the Standard or
3. If there is a Standard or Interpretation that specifically applies to a transaction, it overrides the Framework. In the absence of a Standard or an Interpretation that specifically applies, the Framework should be followed.
4. If there is a Standard or Interpretation that specifically applies to a transaction, management should consider the applicability of the Framework in developing and applying an accounting policy which results in information that is relevant and reliable

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