ACCA AA Syllabus A. Audit Framework And Regulation - What is meant by a conceptual framework of accounting - Notes ^{2 / 8}

The Conceptual framework is

• a framework for setting accounting standards

• a basis for resolving accounting disputes

• fundamental principles which then do not have to be repeated in accounting standards

• a theoretical basis for determining how transactions should be measured (historical value or current value) and reported

• a statement of generally accepted accounting principles (GAAP) for evaluating existing practices and developing new ones

Who else is the framework useful to?

1. Auditors

2. Users of accounts

3. Anyone interested in how IFRS's are formulated

The Framework is NOT an accounting standard, and if there's a conflict between the two then the IFRS wins