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 1 year ago

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