STATUS AND PURPOSE OF THE CONCEPTUAL FRAMEWORK

• Describes the objective of, and the concepts for, general purpose financial reporting.

  Conceptual Framework for Financial Reporting
• The purpose of the Conceptual Framework is to assist the International Accounting Standards Board to develop IFRS Standards that are based on consistent concepts.
• The purpose of the Conceptual Framework is to assist preparers to develop consistent accounting policies when no Standard applies to a particular transaction or other event, or when a Standard allows a choice of accounting policy.
• The purpose of the Conceptual Framework is to assist all parties to understand and interpret the Standards.
• The Conceptual Framework is not a Standard.
• To meet the objective of general purpose financial reporting, the Board may sometimes specify requirements that depart from aspects of the Conceptual Framework.
• The Conceptual Framework may be revised from time to time on the basis of the Board’s experience of working with it.
• Revisions of the Conceptual Framework will not automatically lead to changes to the Standards.
• Any decision to amend a Standard would require the Board to go through its due process for adding a project to its agenda and developing an amendment to that Standard.
• The Conceptual Framework contributes to the stated mission of the IFRS Foundation and of the Board.
• The stated mission of the IFRS Foundation and of the Board is to develop Standards that bring transparency, accountability and efficiency to financial markets around the world.
• The Conceptual Framework provides the foundation for Standards that contribute to transparency by enhancing the international comparability and quality of financial information, enabling investors and other market participants to make informed economic decisions.
• The Conceptual Framework provides the foundation for Standards that strengthen accountability by reducing the information gap between the providers of capital and the people to whom they have entrusted their money. Standards based on the Conceptual Framework provide information needed to hold management to account.
• The Conceptual Framework provides the foundation for Standards that contribute to economic efficiency by helping investors to identify opportunities and risks across the world, thus improving capital allocation.