Conceptual Framework of Accounting

In: Business and Management

Submitted By litonsarker
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Development Of A Conceptual Framework Accounting Essay
‘Developing a conceptual framework is an impossible possibility ‘it is hard to say that this statement is wrong or not. First, there is no accurate or definitive view of what constitutes a conceptual framework, but there is no doubt that conceptual framework helping a development of academic theory, meanwhile, it is also provide a great deal of prescription. Developing a conceptual framework is feasible and promising. In this issue, I explain what is the conceptual framework? Who needs them? And list the importance of conceptual framework to financial report prove my view.
Why do we need to develop a conceptual framework? Of course, it is be useful, the body of concepts should to make rules and relate to financial report; a soundly developed conceptual framework enables the IASB to issue more useful and consistent pronouncements over time. It means a coherent standard should result. So, if framework have no a soundly development, the guidance by it will influent standard-setting based on individual concepts.
In other words, standard-setting cannot base on personal conceptual frameworks; it will lead to wrong conclusions about identical or similar issues than it did previously. As a result, past decisions is not treat as future ones, standards cannot be consistent with one another. Furthermore, the conceptual framework should be paying attention to users’ understanding about financial reporting. On the other hand, the development of conceptual framework should solve new or emerging problems quickly.
Development of a conceptual framework
Conceptual framework has a different definition for IASB and FASB, IASB’s conceptual framework usually is described in the document, FASB’ conceptual framework is a series of concept statements. Both of them are working to develop an improved…...

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