3. Evaluate the influences that impacted the development of the conceptual framework. There can be a variety of conceptual frameworks. There are also wide concepts of affects in conceptual framework, the influences that impacted development of the CF include: the US experience,
In the United States they have their own conceptual framework; they have not adopted either IFRSs or the IASB Framework. Both the IASB and the US Conceptual Frameworks are considered to have shortcomings. As a result, the IASB and FASB are jointly developing a revised conceptual framework. A revised conceptual framework is also necessary because of the joint efforts of the IASB and FASB to converge their accounting standards, with uniform accounting standards there is also a need to have a uniform conceptual framework. the needs of the capital markets,
Economic focuses ignores transactions or events not resulting from market transactions or an exchange of property rights, it also ignores environmental externalities that caused by business. Financial statements included within reports reflect only financial performance and do not provide a means of assessing social or environmental performance. research drawing from efficient market literature that impacted the thinking behind the CF, and moving on the convergence initiative between the USA and IASB will see renewed interest in aligning the FASB framework with that of the IASB. The existing Conceptual Framework is not a Standard or Interpretation and does not override any specific Standard or Interpretation. In a limited number of cases, there may be a conflict between the Conceptual Framework and a Standard. Where there is a conflict, the requirements of the Standard prevail over the Conceptual Framework. However, because the Conceptual Framework will guide the IASB when it develops and revises Standards, the number of these conflicts should diminish through time. Although the Conceptual Framework should guide the IASB when it...
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