1. Consistency in Standards Development:
   A conceptual framework provides a structured basis for developing consistent accounting standards. Without it, there could be a risk of setting standards in an ad-hoc or piecemeal manner, leading to inconsistencies across different standards.
2. Address Emerging Accounting Issues:
   The framework helps guide the development of new standards in response to emerging accounting issues, such as new types of transactions or financial instruments. It ensures that new standards are based on agreed-upon principles, rather than short-term fixes.
3. Assists in Interpretation of Standards:
   It helps preparers and users of financial statements interpret and apply standards, particularly in complex or ambiguous situations. The framework provides a foundation for making judgments when a specific accounting issue is not covered by a standard.
4. Enhances Credibility of Financial Reporting:
   A well-defined conceptual framework enhances the credibility of financial reporting by ensuring that the standards are grounded in clear, transparent principles. This improves users’ confidence in the accuracy and relevance of financial information.
5. Reduces Political and Lobbying Pressure:
   The framework provides a robust set of principles that reduces the influence of political or lobbying pressures in the standard-setting process. It ensures that standards are set based on the needs of users and sound accounting principles, rather than being influenced by vested interests.

(Marks evenly spread = 5 marks)