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Your Financial Controller recently mentioned to you that one aspect of normative accounting theory relates to the issue of the usefulness of a conceptual framework and how helpful such a framework is in terms of both users and preparers of financial statements.
Question 1: She went on to say that despite concerted efforts over many years, the IASB and FASB have so far not succeeded in arriving at consensus on the contents of a globally applicable conceptual framework. Your Financial Controller would like you to find out more about this debate and critically evaluate the debate for and against an international conceptual framework and international accounting standards.
Hints: Harmonisation, Normative accounting, Reliable, relevant
Financial Statement Analysis and Preparation
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Explain the IASB Conceptual Framework's perspective of users and their decisions.
T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
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