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Write down the primary purpose/objective of the Conceptual Framework.

Question

Write down the primary purpose/objective of the Conceptual Framework.

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Solution

The primary purpose or objective of the Conceptual Framework is to provide a coherent system of interrelated objectives and fundamentals that can lead to consistent standards and that prescribes the nature, function, and limits of financial accounting and financial statements. It serves as a guide to the International Accounting Standards Board (IASB) to develop standards and is also a reference for resolving accounting issues.

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Which is a purpose of the Conceptual Framework?Group of answer choicesTo assist all parties to understand and interpret the StandardsTo assist the IASB to develop IFRS based on consistent conceptsTo assist preparers to develop consistent accounting policy when no Standard applies to a particular transaction or when Standard allows a choice of accounting policyAll of these can be considered a purpsoe

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