Under IFRS, the role of the conceptual framework:
A) Primarily involves guiding standard setters to make sure that standards are consistent with each other.
B) Includes serving as a guide for practitioners when a specific standard does not apply.
C) Is less important than in U.S. GAAP.
D) Has resulted primarily from a convergence with U.S. GAAP.

Question

Quizplus · Accepted Answer

Under IFRS, the conceptual framework serves as a guide for practitioners when a specific standard does not apply. It helps in understanding the underlying principles and concepts that form the basis of accounting standards. The framework helps in the development of new standards, interpretation of existing standards, and provides a consistent approach to financial reporting. In addition, it also helps in resolving any accounting issues that may arise in practice.

Under IFRS, the Role of the Conceptual Framework