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"There is no place for judgement in accounting it's simply mathematics and a precise subject." Explore the above statement - Essay Example
Author : turnerraul
Finance & Accounting
Pages 6 (1506 words)
The conceptual framework includes the principles, regulations and rules that are to be followed by accounting officials while preparing and presenting financial statements…
The existing conceptual framework has proven to be extremely helpful to the IASB while trying to improve the financial reporting standards (IFRS, 2013a). The framework is a key parameter that defines the underlying concepts of transparent and relevant preparation of financial statements (AASB, 2010). It must be understood that the Conceptual framework in no way represents the IFRS and therefore the framework does not state accounting requirements for any particular disclosure issue or measurement (IFRS, 2013b). Nothing that is outlined in the conceptual framework supersedes any specific IFRS. However, in certain cases issues covered under the IFRS have conflicted with the conceptual framework. As such, in those cases the IFRS supersedes the conceptual framework as it is a globally accepted standard (BDO international, 2010). The conceptual framework plays a crucial role in the presentation and preparation of high quality financial reports in order to satisfy the needs of their users (Working Group on Fundamental Concepts, 2004). The primary objectives of the conceptual framework are to assist the IASB in order to help them to develop the future international accounting standards. ...