A major beneficiary from the development of a conceptual framework is expected to be:
A) governments
B) preparers of financial reports
C) accounting standard setters
D) managers

Question

Quizplus · Accepted Answer

Accounting standard setters are expected to be the major beneficiary from the development of a conceptual framework. This is because a conceptual framework provides a foundation for the standard-setting process by establishing the objectives, principles, and concepts that underlie financial reporting. This, in turn, helps standard setters to develop and improve accounting standards that are useful for financial statement users. While governments, preparers of financial reports, and managers may also benefit from a conceptual framework, they are not the primary beneficiaries.

A Major Beneficiary from the Development of a Conceptual Framework