Which of the following is not true concerning conceptual frameworks?
A)The FASB, but not the IASB, relies on a conceptual framework to guide their standard-setting decisions.
B)The conceptual framework is not a rigorous set of principles from which standard setters can logically deduce appropriate financial reporting standards.
C)The purpose of a conceptual framework is to guide standard-setting decisions in order to enhance the quality and consistency of those decisions.
D)The FASB and the IASB have separately developed their conceptual frameworks, and those frameworks are similar.
E)The FASB and the IASB are currently working to develop a common conceptual framework for financial reporting.

Question

Quizplus · Accepted Answer

The FASB (Financial Accounting Standards Board) and the IASB (International Accounting Standards Board) both rely on conceptual frameworks to guide their standard-setting decisions, making statement A incorrect.

Which of the Following Is Not True Concerning Conceptual Frameworks