The Reason of Support Principle Based Conceptual Framework

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Accg399 Discussion forum 1

The reason of support principle based conceptual framework by Measurement uses conceptual framework to give a general idea that it can make the financial report to compare with companies in other countries easily. Recently, there are many international companies are being operated in different countries. Different companies have their own situation; too many rules will lead to difficulties in comparing the data of financial reports. It will lose the international investor. Besides, too many rules could make it complex for company accountant in preparing financial reports. Therefore the conceptual framework of accounting should use general measurement in order to let accountants modulate accounting data in different situation.

Reference:
Conceptual Framework Phase C — Measurement, viewed by 26/03/2013 <http://www.iasplus.com/en/meeting-notes/agenda_0906/agenda1192>

The reason of support principle based conceptual framework
As we know, the purpose of the conceptual framework is to provide a comprehensive structure for accountants and organization to direct their behavior when dealing with the phases in financial accounting. It gives general principles and characteristics that required in financial reporting these factors also gives a direction for accountants and organization to act correctly in preparing financial statements by having this comprehensive framework. Accountants can keep consistency in their behavior even in the situation that accounting standards are absent. To some extent, the general principle might be more flexible and adoptable in different situation. Therefore, it ensures the final outcome, financial statement information, are adequate and sufficient for the decision makers to make their economic decisions.

Reference:
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Conceptual Framework Phase C — Measurement, viewed by 27/03/2013...
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