Definition And Format Of Conceptual Framework

Being important to the discipline of accounting, the objectives of IFRS and IAS are to give guidance on the presentation of financial statements. IFRS as

A conceptual framework has an important role for guiding nurses in providing care. This paper will compare

The chapter consists of requirements, criteria, factors, elements, and principles that gives insight on how to solve the Final Design project. The conceptual framework is a tentative theory (answer) for the research and design questions and represents the knowledge gained on how to solve a practical problem in the specific situation.

The conceptual framework is an attempt to provide a metatheoretical structure for financial accounting. SFAC No.3 defines 10 elements of financial statements. It is obviously a resolution of the definitions presented in the discussion mem for the conceptual framework project. Elements are what accounting professionals measure and the attributes is about how to measure. Definitions can be helpful to the financial statements which have been formulated in order to help professionals to specify the qualification are. Also, the definitions must be expressed in the metatheoretical structure.

The process of developing common conceptual framework was planned to take place in 8 phases. It covers the entire details of financial reporting beginning from the objectives and desired characteristics of financial reports, to the definition of the elements, the recognition and measurement of those elements, and the form and content of financial reports. (Ref 4). A timeline is adopted for each stages of the process and is expected to be completed in total three to five years in different phases.

This Conceptual Framework sets out the concepts that underlie the preparation and presentation of financial statements for

1.6  The IASB and the FASB are currently developing a revised conceptual framework of financial reporting. If you have been asked to review the framework—which is an example of a normative theory of accounting—why would it be important for you to pay particular attention to how the objective of financial reporting is defined within the framework?

IASC’s Framework for the Preparation and Presentation of Financial Statements was adopted by the IASB in 2001. In September 2010 the IASB replaced the Framework with the Conceptual Framework for Financial Reporting.

The conceptual framework of accounting is made up of entities, measurement processes and the objectives and characteristic of the information needed. With the accounting of transactions economic entities are defined and measurement processes are created and the information required is clarified. Once a need and recognition of the value of information was acknowledged the need for a conceptual framework of accounting came into being. Once the conceptual framework is created a need for rules and laws that enforce the standards, principles, and codifications are formulated to meet the needs of the economic entities. [1]

Understanding the foundation to activities embraced by the International Accounting Standards boards and other standard setting bodies to execute the reception of a uniform arrangement of accounting standards for around the world know as IFRS.

• Accrual Basis. The effects of transactions and other events are recognized when they occur, rather than when cash or its equivalent is received or paid, and they are reported in the financial statements of the periods to which they relate.

This article aims at addressing an audience which is comprised of a board member and senior staff of the IASB, setters from the National Accounting Standards and the article is also meant to be published in the IASB website, where those in accounting and business can be critic to it. The paper will define what the framework for the preparation and presentation of financial statements is, and there will be intense discussion of the role of the framework. The framework's criticisms will also be focused on to clarify on the efficiency of a constitution. Inconsistencies and internal logical errors will be discussed, with regards to the conceptualization of an accounting constitution. Recommendations and suggestions will then be made based on the findings of research.

So, the benefit behind the conceptual framework is increasing users’ understanding of financial reporting. Second, IASB cannot be alone without the implementation of IFRS. Also, IASB made it easy for companies to compare financial statements due to the procedural of IASB. However, it will enable auditors to quickly resolve financial reporting problems by referring to an existing framework. Third, the reason where IASB framework, developing future accounting standards. Through, globalization accounting becomes an international language, it allowed a lot of investment opportunities and trading internationally. Fourth, understandable information about financial statements for users.

The IASB frameworks when developing the accounting standards purposes were divided into 4 categories. The categories are as following:

Conceptual Framework helps the International Accounting Standards Board to develop criterion that are depend on consistent concepts. It helps prepares to