The Conceptual Framework: Past, Present, and Future
Sylwia Gornik-Tomaszewski, Yeong C. Choi
January 1, 2018
Conceptual Framework, Accounting, Best Practices
St. John's University
In a broad sense, a conceptual framework can be seen as a structured theory of accounting. A conceptual framework is intended to set forth objectives and fundamental concepts that will be the basis for the development of accounting standards. A complete, internally consistent, and logical conceptual framework assists the standard setters in developing new and improving existing standards based on underlying concepts. It also assists preparers in applying financial reporting standards, auditors in providing an opinion on whether the financial statements are in accordance with a given set of standards, and users in interpreting the information presented in the financial statements.