Which of the following statements about generally accepted accounting principles (GAAP) and conceptual framework is correct?
A) Conceptual framework is part of GAAP.
B) GAAP is part of the conceptual framework.
C) Australian GAAP only consists of the developed accounting standards.
D) Since 2005, SAC 1 is no longer a part of Australian conceptual framework.

Question

Quizplus · Accepted Answer

Australian GAAP consists of the conceptual framework, accounting standards and interpretations, as well as developed accounting concepts and principles. SAC 1 is still a part of Australian conceptual framework because the Framework developed by the IASB does not contain the definition of a reporting entity.

Which of the Following Statements About Generally Accepted Accounting Principles