As part of its continuing efforts to further streamline and standardize International Financial Reporting Standards (IFRS) around the world, the International Accounting Standards Board (IASB) issued an exposure draft (ED) on the revised Conceptual Framework for Financial Reporting (the Framework).
The Framework is not itself a standard, but is instead akin to the “backbone” upon which the various standards are fleshed out. It provides a clear and consistent set of concepts to help define and standardize the objectives behind the various standards. The Framework not only helps the IASB develop and update IFRS, it also helps the preparers of financial statements create their own policies when no Standard applies to a particular transaction or event, or when a choice of accounting policies is allowed. In addition, it can also help others better understand and interpret IFRS.
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