Why Conceptual Framework Is Considered 
Why Conceptual Framework is considered to be a Normative theory? Do we need conceptual framework? Discuss.
A conceptual framework of accounting can be considered to be a normative theory of accounting. A conceptual framework makes prescriptions in regards to what the objectives of accounting are, what qualitative characteristics general-purpose financial information should possess, how the elements of accounting should be defined and when they should be recognised and how the elements of accounting should be measured.
The view often promoted by various advocates of conceptual framework projects is that it is difficult and perhaps illogical to develop systems of financial accounting if we do not initially agree on important issues such as what general purpose financial reporting is, what the objective of a general purpose financial reporting system is and in relation to this, what the qualitative characteristics of the information generated from that system should be. Further, to make the system consistent we need to agree on how we define, recognise and measure the elements of that system. The view taken is that there are a number of building blocks involved in developing a logical system of accounting and that a conceptual framework develops such building blocks in a logical order. For example, we initially need some consensus on the definition of general purpose financial reporting and of a reporting entity, before we can consider the objective of financial reporting. Once we have considered the objective of financial reporting we can then consider defining the qualitative characteristics of financial reporting, as well as how to define the elements of financial reporting and so forth.
Without some consensus on issues such as those mentioned above, it is likely that the development of rules of accounting (assuming that we need rules) will be undertaken in a rather piecemeal manner with limited consistency between the various rules (which raises another
A conceptual framework of accounting can be considered to be a normative theory of accounting. A conceptual framework makes prescriptions in regards to what the objectives of accounting are, what qualitative characteristics general-purpose financial information should possess, how the elements of accounting should be defined and when they should be recognised and how the elements of accounting should be measured.
The view often promoted by various advocates of conceptual framework projects is that it is difficult and perhaps illogical to develop systems of financial accounting if we do not initially agree on important issues such as what general purpose financial reporting is, what the objective of a general purpose financial reporting system is and in relation to this, what the qualitative characteristics of the information generated from that system should be. Further, to make the system consistent we need to agree on how we define, recognise and measure the elements of that system. The view taken is that there are a number of building blocks involved in developing a logical system of accounting and that a conceptual framework develops such building blocks in a logical order. For example, we initially need some consensus on the definition of general purpose financial reporting and of a reporting entity, before we can consider the objective of financial reporting. Once we have considered the objective of financial reporting we can then consider defining the qualitative characteristics of financial reporting, as well as how to define the elements of financial reporting and so forth.
Without some consensus on issues such as those mentioned above, it is likely that the development of rules of accounting (assuming that we need rules) will be undertaken in a rather piecemeal manner with limited consistency between the various rules (which raises another