What is a conceptual framework for financial reporting?
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Keeping this in consideration, what is meant by conceptual framework for financial reporting?
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.
Additionally, what is meant by a conceptual framework? A conceptual framework is an analytical tool with several variations and contexts. It is used to make conceptual distinctions and organize ideas. Strong conceptual frameworks capture something real and do this in a way that is easy to remember and apply.
Similarly, you may ask, what are the components of the conceptual framework for financial reporting?
Answer: The components of the conceptual framework for financial reporting include recognition and measurement concepts—the economic entity, going concern, monetary unit, and periodicity assumptions; the historical cost, revenue recognition, matching, and full disclosure principles; and the cost-benefit, materiality,
What is regulatory framework for financial reporting?
A regulatory framework for the preparation of financial statements is necessary for a number of reasons: To ensure that the needs of the users of financial statements are met with at least a basic minimum of information. To regulate the behaviour of companies and directors towards their investors.