Applying the Conceptual Framework is subjective and requires judgement.

Applying the Conceptual Framework is subjective and requires judgement. Would the IASB be better off to abandon the Conceptual Framework entirely and instead rely on a very active interpretations committee that develops detailed guidance in response to requests from constituents?

Expert Solution

■The international accounting standards board is an independent, private sector body that develops and approves international financial reporting standards

●No, just because something requires judgement does not mean it should be disregarded and abandoned.

●The conceptual framework provides guidance and direction to the standard setters and therefore, does lead to consistently among standards

●Although an active interpreations committee is a good idea, entities should not just rely solely on guidance but rather use their response in conjuction with the conceptual framework provided.

●Without a framework, the interpretation committee would still encounter problems with no guidelines.

ekkarill92 answered 2 years ago

a) The IASB’s Framework Conceptual Framework for Financial Reporting requires financial statements to be prepared on...

a) The IASB’s Framework Conceptual Framework for Financial Reporting requires financial statements to be prepared on the basis that they comply with certain accounting concepts, underlying assumptions and (qualitative) characteristics. Five of these are: Matching/accruals Faithful representation Prudence Comparability Materiality Required: Briefly explain the meaning of each of the above concepts/assumptions

Discuss the conceptual framework of accounting for federal agencies and compare it to the conceptual framework...

Discuss the conceptual framework of accounting for federal agencies and compare it to the conceptual framework established by the GASB for state and local governments. Review the financial statements of a federal department/agency and include a specific example of reporting that would differ from that of a state and local government and note the difference(s)

What is a conceptual framework? Why is a conceptual framework necessary in financial accounting?

The IAS Conceptual Framework requires financial reporting to provide financial information that is useful to the...

The IAS Conceptual Framework requires financial reporting to provide financial information that is useful to the users of the financial statements to make economic decisions about a business entity. However many critics believe that there are too many limitations in the preparation of financial statements for them to be useful. Required: Critically discuss the usefulness and limitations of financial statements.

Why was the Conceptual Framework developed?

What is the objective of the Conceptual Framework?

applying of the cobit framework is the responsibility of

Discuss the background of theoretical framework and conceptual framework and its implications in research

Distinguish between the GAAP and IFRS conceptual framework.

Pursuant to the conceptual framework, for an item to be characterised as a liability the definition...

Pursuant to the conceptual framework, for an item to be characterised as a liability the definition of liabilities must be applicable to the transaction or event, and the recognition criteria should also be satisfied. Applying the definition of liabilities, there are three key components in the definition of ‘liability’, these being: 1. There must be an expected future disposition of economic benefits to other entities. 2. There must be a present obligation. 3. A past transaction or other event must...

Question