The disscussion of the conceptual framework Essay

The disscussion of the conceptual framework - Essay Example The IASB’s main role is to assist international users to design an international framework for the preparation and presentation of financial report, a role that has over the years faced major criticism due to the weaknesses in the objectives and the concepts that it is based on. The Framework is developed to address the fundamental reason for the presence of the financial statements, which is to provide useful financial information about the reporting entity to all the related parties (investors, lenders, other creditors) for making decisions about providing resources to the entity. The contents of the Framework are central around the five elements from which financial statements are constructed. This paper aims at identifying and discussing the implementation of the IASB’s conceptual framework based on its hands-on objectives mainly that of providing a basis for administrative standard-setting and resolving accounting controversies in deliberation outline to the accoun ting concepts, principles and focus. The paper is organized into three sections; the first section explains the concepts, objectives and focus of the IASB’s conceptual framework, the second section describes the weaknesses and the basis of the criticism facing the IASB framework while the third section is a conclusion, summary and a discussion of the criticism facing the current IASB’s discussion paper. As stated, the IASB’s framework sets concepts that shape how financial statements are prepared and presented for external users. The IASB framework lacks accounting standard status in comparison to the statement of principles derived from the United Kingdom Accounting Standards Board (ASB). The IASB framework contains seven segments that cover areas such as; objectives of financial reporting, the underlying assumptions, Qualitative features of financial information, the fundamental rules of financial