Group 5 (Monday 12-2.50pm)Lee Pui Ching 17059902/1Muhammad Yusuf Adriansyah 17094223/1Tay Yee Wen 17125354/1Nur Farisha Binti Jamali 17159367/1Pang Ghee Xin 17172446/11.Explain why principles-based standards require a conceptual framework.Principle-based standards require a conceptual framework so that they can root infundamental concepts that help in future establishment and development of principle-basedstandards. A conceptual framework can also be the guideline for FASB and IASB to achievecoherent accounting and reporting. In theory, the conceptual framework drives thedevelopment of coherent principle-based standards as it provides consistent conceptualprinciples. Conceptual frameworks improve the robustness of standard setting procedures,ensure consistency and help to define and establish potential principles-basedstandards.Users can obtain a clear and thorough understanding of the details presented in
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International Financial Reporting Standards, Pang Ghee Xin, Lee Pui Ching, Muhammad Yusuf Adriansyah, Tay Yee Wen