Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Explain what a conceptual framework is and the advantages of having such a framework?

user-image
Question added by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
Date Posted: 2014/03/04
Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

A conceptual framework is a statement of theoretical principles that provides guidance for financial accounting and reporting.

 

Advantages of conceptual framework:

  1. The main advantage of a conceptual framework is that it clarifies the conceptual underpinnings of accounting standards and allows standard setters to develop accounting standards on a consistent basis.
  2. It also assists preparers, auditors and users of financial statements to understand the approach to standard setting, and the nature and function of the financial information reported.

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.