BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The principles in the conceptual framework are specific in nature while accounting standards provide more general requirement for financial reporting
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The principles in the conceptual framework are designed to provide guidance and apply to a limited range of decisions relating to the preparation of financial reports while accounting standards apply to a wider range of decision relating to the preparation of financial reports
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The principles in the conceptual framework are general concepts while accounting standards provide specific requirements for particular area of financial reporting
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All above
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Detailed explanation-1: -The principles in the Conceptual Framework are specific in nature while accounting standards provide more general requirements for financial reporting. The principles in the Conceptual Framework are general concepts while accounting standards provide specific requirements for a particular area of financial reporting.
Detailed explanation-2: -What Is the Conceptual Framework? The Conceptual Framework (or “Concepts Statements”) is a body of interrelated objectives and fundamentals. The objectives identify the goals and purposes of financial reporting and the fundamentals are the underlying concepts that help achieve those objectives.
Detailed explanation-3: -The Conceptual Framework is not a Standard. Nothing in the Conceptual Framework overrides any Standard or any requirement in a Standard. To meet the objective of general purpose financial reporting, the Board may sometimes specify requirements that depart from aspects of the Conceptual Framework.
Detailed explanation-4: -The primary purpose of the Conceptual Framework was to assist the IASB in the development of future IFRSs and in its review of existing IFRSs. The Conceptual Framework may also assist preparers of financial statements in developing accounting policies for transactions or events not covered by existing standards.