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Conceptual Framework

The Conceptual Framework for Financial Reporting (the ‘Conceptual Framework’) describes the objective of, and the concepts for, general purpose financial reporting. It is a practical tool that:

  1. assists the International Accounting Standards Board (IASB) to develop Standards that are based on consistent concepts;
  2. assists preparers to develop consistent accounting policies when no Standard applies to a particular transaction or event, or when a Standard allows a choice of accounting policy; and
  3. assists others to understand and interpret the Standards.

The IASB’s existing Conceptual Framework was developed by its predecessor body, the International Accounting Standards Committee, in 1989.

The IASB aims to make significant improvements to the Conceptual Framework without delay and expects to complete the revisions to the Conceptual Framework in 2016. To achieve this, the IASB is building on the existing Conceptual Framework—updating it, improving it and filling in gaps instead of fundamentally reconsidering all aspects of the Conceptual Framework.

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