Iasb Conceptual Framework

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IASB conceptual framework In 2004, the conceptual framework as a joint project issued by IASB and FASB (IAS plus, 2012a) established the concepts or not accounting standards that underlie the preparation and presentation of financial statements for external users (IASCF, 2009b). This essay is to discuss the objectives and contents of IASB conceptual framework. In addition, one of the qualitative characteristics: faithful representation will be evaluated. Also, a summarised paragraph will be given at the end of this essay. As IASCF (2009a) mentioned, there are seven objectives as the indicator of conceptual framework. Firstly, it needs to review the current accounting standards and help in improving standards. Helping in improving harmonisation that reduces the number of alternative treatments is the second objective because alternative treatments may cause the difficulty of properly comparing different business performances. The third point is to help the countries, which have the immature domestic accounting standards. Fourthly, framework can assist the preparers including accountants and book keepers in producing financial statement under standards and resolving the emerging issues, which are not involved in standards. Furthermore, it help auditors in avoiding misclassification effectively and deciding whether financial statement comply with the standards based on the concepts of assets, liabilities, income, expenses and equity defined by conceptual framework. Finally, the sixth and seventh points can be summarised that conceptual framework helps external users in understanding and interpreting financial performance and position. Based on the IASCF document (2009b), the framework is designed to deal with issues. Firstly, the objective of financial statement is to offer the useful information, regarding to financial position, financial performance and

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