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Developing a conceptual framework is an impossible possibility - Essay Example
Finance & Accounting
Pages 6 (1506 words)
DEVELOPING A CONCEPTUAL FRAMEWORK IS AN IMPOSSIBLE POSSIBILITY By name University’s name Developing a conceptual framework can be an impossible. Conceptual framework is a theory in accounting against which accounting problems can be tested against objectively…
Conceptual frameworks have been constantly changed from them. However, individual organizations have come up with their own conceptual frameworks that suit specific organizational needs. A conceptual framework provides an over view of how things should be done in an organization. It is a coherent system of related objectives and fundamentals that should lead to consistent standards that prescribe the nature, function, and limits of financial accounting and financial statements.” (Foulks Lynch 1998) A conceptual framework development takes time. The worst part is that once it is ready, hardly any of those principles are applied since the dynamic economic environment will be experiencing other challenges. Conceptual framework is like a constitution in financial accounting that stipulates its nature, function and its limits. The International Accounting Standards Board (IASB) also came up with an internationally recognized conceptual framework, which aims at streamlining the accounting principles worldwide. This promotes external investments. The second function of the conceptual framework is to solve any emerging problems in the accounting sector. This explains why the boards are constantly reviewing the conceptual framework to suite the new challenges. ...
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