- 6 Marks
CR – May 2019 – L3 – Q5c – Regulatory framework and ethics
The question asks for four reasons why the IASB found it necessary to revise the conceptual framework, as part of its effort to improve financial reporting.
Question
The Framework for the Preparation and Presentation of Financial Statements was originally issued in 1989. In 2004, the IASB and the FASB decided to review and revise the conceptual framework. However, this decision changed priorities and the slow progress in the project led to the project being abandoned in 2010. This was after only Phase A of the original joint project was finalized and introduced into the existing framework as Chapters 1 and 3 in September 2010.
The current form of the conceptual framework as at May 2018 provides a revised and complete version of the framework.
Required:
Explain FOUR (4) primary reasons why the IASB believed it was necessary to revise its conceptual framework. (4 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Conceptual Framework, Financial Reporting, IASB, Revisions
- Level: Level 3
- Topic: Regulatory Framework and Ethics
- Series: MAY 2019