What is the Role of the Conceptual Framework on IFRS exam ?
- Conceptual Framework sets out agreed concepts that underlie financial reporting – objective, qualitative characteristics, element definitions.
- IASB uses Conceptual Framework to set standards – enhances consistency across standards – enhances consistency over time as Board members change – provides benchmark for judgements
- Prepares use Conceptual Framework to develop accounting policies in the absence of specific standard or interpretation
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