- 6 Marks
CR – Nov 2017 – L3 – Q5b – Regulatory Framework and Ethics
Discuss the need for an international conceptual framework for financial reporting and its practical impact on accounting issues.
Question
The financial reporting process is concerned with providing information that is useful in the business and economic decision-making process. Therefore, a conceptual framework will form the theoretical basis for determining which events should be accounted for, how they should be measured, and how they should be communicated to the user. Although theoretical in nature, a conceptual framework for financial reporting has practical aims.
Required:
Discuss whether an agreed international framework for financial reporting is needed in order to resolve practical accounting issues.
Find Related Questions by Tags, levels, etc.
- Tags: Accounting Issues, Conceptual Framework, International Standards
- Level: Level 3
- Topic: Regulatory Framework and Ethics
- Series: NOV 2017
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