(1) Answer: Conceptual Framework: The Conceptual Framework is a report of generally recognized theoretical values which is very important form the period of reference for business reporting. Moreover, it is a coherent structure of related purposes and a major idea which is recommends the environment, purpose and boundaries of business accounting that is predictable to lead to reliable guidance. Also, it is planned to assist the community interest by providing arrangement and direction to financial accounting and reporting to facilitate the provision of neutral commercial and correlated information.
The conceptual Framework for Financial Reporting: In 1989, the international Accounting standards team expressed the new conceptual framework. Conceptual framework for Financial Reporting 2010(CF) was permitted by the IASB in September 2010. The IASB Framework is a theoretical accounting context that sets out the ideas that emphasize the connection of financial reports for external operators.
Enhancing Qualitative Characteristics of Financial Statements: The qualitative characteristics of beneficial FR classify the categories of data are likely to be maximum valuable to operators in creating decisions about the reporting entity on the basis of information in its financial report. Normally, financial data is advantageous when it is appropriate and represents dependably. Also, it is usefulness when is improved if it is comparable, verifiable, timely and understandable. Now I will describe this usefulness in below:
Comparability: Comparability permits users to recognise and understand similarities. Data about a reporting object is more valuable if it could be related with similar data about other individuals and with related info about the similar entity for extra period.
Verifiability: Verifiability can help to guarantee users that information represents truly the economic sensations.