The International Accounting Standards Board (Board) issued the revised Conceptual Framework for Financial Reporting (Conceptual Framework), a comprehensive set of concepts for financial reporting, in March 2018. In revising the Conceptual Framework, the Board sought a balance between providing high-level concepts and providing enough detail for the Conceptual Framework to be useful to the Board and others. The Board views the Conceptual Framework as a practical tool to help it develop Standards. Hence, the Conceptual Framework includes concepts that help the Board develop Standards and discusses the factors the Board needs to consider in making judgments. (Source: IFRS Conceptual Framework Project Summary, March 2018)

REQUIRED:
(a) Discuss FOUR (4) importance of the conceptual framework in creating a consistent set of accounting rules and standards. (6 Marks)

(b) In order to ensure consistent uttering of accounting information, the synchronisation of the conceptual framework is considered critical in the establishment of accounting standards. Explain any SIX (6) qualitative characteristics of financial information as suggested by the conceptual framework which are useful for decision-making. 

Answer rating: 100% (QA)

a Under accounting regulation a Conceptual Framework is typically defined as a coherent system of interrelated objectives and fundamentals aimed at leading to consistently articulated standards and pr... View the full answer