What does the Conceptual Framework deal with?

A conceptual framework can be defined as a system of ideas and objectives that lead to the creation of a consistent set of rules and standards. Specifically in accounting, the rule and standards set the the nature, function and limits of financial accounting and financial statements.

What are the Conceptual Framework of financial reporting?

The Conceptual Framework describes the objective of, and the concepts for, general purpose financial reporting. Its purpose is to: assist the IASB in developing IFRS Standards that are based on consistent concepts.

What are the three levels of Conceptual Framework?

First level: The objective of financial reporting, the “why” or purpose of accounting. Second level: The qualitative characteristics and the elements of financial statements, which form a bridge between the 1st and 3rd levels. Third level: Recognition, measurement, and disclosure concepts, the “how” or implementation.

How many chapters are in the revised Conceptual Framework?

The new RCF has an introduction, eight chapters and a glossary. Five of the chapters are new, or have been revised substantially: The reporting entity • The elements of financial statements • Recognition and derecognition • Measurement; and • Presentation and disclosure.

What is the conceptual framework of the IASB?

The IASB operates under the oversight of the IFRS Foundation. IFRS and conceptual framework are issued by IASB. What is IASB’s Framework? Accounting framework is the basic or concept that accounting reports or financial reports are prepared.

Why is the conceptual framework not an IFRS Standard?

(c) assist all parties to un­der­stand and interpret IFRS Standards. As regards the status of the Conceptual Framework, the staff rec­om­mended that the IASB confirm that because the Conceptual Framework is not an IFRS Standard it does not override the re­quire­ments of any specific Standard.

When was the conceptual framework for Financial Reporting published?

The IASB published exposure draft ED/2015/03 Conceptual Framework for Financial Reporting (‘the ED’) in May 2015. After ex­pi­ra­tion of the comment period, the IASB resumed its de­lib­er­a­tions by pre­sent­ing an analysis of the comment letters at the March 2016 IASB meeting.

Which is the latest version of conceptual framework?

This project has been replaced by the com­pre­hen­sive Conceptual Framework joint project being un­der­taken by the IASB and FASB. Completed 2018. The revised version of the Conceptual Framework was issued on 29 March 2018.