Critically evaluate recent developments with respect to the conceptual framework, especially referring to the recent IASB Exposure Draft. Introduction An accounting conceptual framework can be defined as, (AT Foulks Lynch, 1998), A coherent system of inter-related objectives and fundamentals that should lead to consistent standards that prescribe the nature, function and limits of financial accounting and financial statements. The main reasons for developing an agreed conceptual framework are provides a framework for setting accounting standards, a basis for resolving accounting disputes and fundamental principles which then do not have to be repeated in accounting standards. The scope of Conceptual framework included the objective of financial reporting and qualitative characteristics of useful financial information. The objective of financial statements is to provide information about the reporting entity’s financial performance and financial position that is useful to a wide range of users for
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