FRF7

Syllabus A1. The need for a conceptual framework and the characteristics 1 / 4

a) Describe what is meant by a conceptual framework for financial reporting.
b) Discuss whether a conceptual framework is necessary and what an alternative system might be.
c) Discuss what is meant by relevance and faithful representation and describe the qualities that enhance these characteristics.
d) Discuss whether faithful representation constitutes more than compliance with accounting standards.
e) Discuss what is meant by understandability and verifiability in relation to the provision of financial information.
f) Discuss the importance of comparability and timeliness to users of financial statements.
g) Discuss the principle of comparability in accounting for changes in accounting policies.
The need for a conceptual framework and the characteristics