Conceptual Framework - Purpose and status (IASB) (2024)

FAQs

Conceptual Framework - Purpose and status (IASB)? ›

The primary purpose of the Conceptual Framework was to assist the IASB in the development of future IFRSs and in its review of existing IFRSs. The Conceptual Framework may also assist preparers of financial statements in developing accounting policies for transactions or events not covered by existing standards.

The purpose of the Framework is to: assist the IASB to develop and revise its standards. assist entities to develop consistent accounting policies when no standard applies to a particular transaction or other event, or when a standard allows a choice of accounting policy, and.

A conceptual framework sets forth the standards to define a research question and find appropriate, meaningful answers for the same. It connects the theories, assumptions, beliefs, and concepts behind your research and presents them in a pictorial, graphical, or narrative format. Updated on August 28, 2023.

The Conceptual Framework may also assist preparers of financial statements in understanding the accounting standards. The authoritative status of the Conceptual Framework for financial reporting is that it is used when there is no standard or interpretation related to the reporting issues under consideration.

The conceptual framework provides a basis for consistent judgments by standard setters, preparers, users, auditors, and others involved in financial reporting. A conceptual framework will not solve all accounting problems but if used on a consistent basis over time, it should help improve financial reporting.

The primary purpose of the Conceptual Framework was to assist the IASB in the development of future IFRSs and in its review of existing IFRSs. The Conceptual Framework may also assist preparers of financial statements in developing accounting policies for transactions or events not covered by existing standards.

The objective of the conceptual framework is to provide users with important information for making and analyzing decisions and for accountability purposes. The elements of the conceptual framework contain the elements of the financial statement, which include expenses, revenue, liabilities, assets, and equity.

The Conceptual Framework deals with concepts that apply to general purpose financial reporting (financial reporting) under the accrual basis of accounting.

The objective of the conceptual framework is to provide financial information about the reporting entity primarily to present and potential equity investors, lenders, and other creditors in making decisions about providing resources to the entity.

What are the underlying assumption of IASB conceptual framework? ›

Accrual accounting and 'going concern' are two key assumptions that underlie the preparation of financial statements.

Frameworks are a huge help to developers in designing products. They provide an infrastructure that has already figured out the low-level details, allowing the developer to focus on the unique details of the specific project. The developer also has to write less code.

Short Answer. The IASB conceptual framework focus on the creation of financial statements as it looks up toaccomplish the requirements of all the shareholders. Whereas FASB targets financial reporting as its purpose is to provide aid to the investors.

The Importance of a Conceptual Framework in Research

Provide a basis for research design: The conceptual framework provides a blueprint for the research study, outlining the key concepts, variables, and relationships between them. This helps researchers to design a study that is logical, structured, and focused.

A conceptual framework in research is used to understand a research problem and guide the development and analysis of the research. It serves as a roadmap to conceptualize and structure the work by providing an outline that connects different ideas, concepts, and theories within the field of study.

A conceptual framework helps to first identify and then clarify what you know, care about, and value as central aspects of a study and then to connect these with the various other aspects of and influences on your research (Ravitch & Riggan, 2016).

The IASB is charged with developing and agreeing new accounting standards that can be used across the world and maintaining those standards. The members of the IASB meet monthly in public to review and discuss new papers and projects.

A conceptual framework is like a roadmap for your study, helping you visualise your research project and put it into action. It defines the relevant variables for your study and maps out how they might relate to each other.