Conceptual Framework in Accounting: Accounting Theory & Contemporary Issues

Accounting Theory &
Contemporary Issues

Table of content
 Conceptual framework in accounting
 Objective of general- purpose financial reporting
 Prudence & Asymmetrical Prudent
 Concept of substance over form
 References

Conceptual framework in accounting
The International Accounting Standards Board (IASB) issued the revised conceptual framework in
accounting in March 2018, which describe the comprehensive set of concepts for accounting and its
reporting.
It sets out:Financial reporting objectives Financial reporting objectivesGuidance and concepts on presentation and
disclosure
Guidance and concepts on presentation and
disclosureCriteria for liabilities and assets including in
financial statements and also provide
guidance on when to remove them
Criteria for liabilities and assets including in
financial statements and also provide
guidance on when to remove themDefinition of a liability, an assets, expenses,
income and equity.
Definition of a liability, an assets, expenses,
income and equity.Useful characteristics for financial
information
Useful characteristics for financial
informationA specification of the reporting entity and its
boundary
A specification of the reporting entity and its
boundaryBases of measurement and guidance on when
to use them
Bases of measurement and guidance on when
to use them