Conceptual Framework for Financial Reporting
The Conceptual Framework explains the objectives and concepts underlying general purpose financial reporting. It addresses useful information, financial statement elements, recognition, measurement, presentation and disclosure. It guides the IASB’s standard setting and helps develop accounting policies where no applicable standard gives a rule. It is not itself an IFRS Accounting Standard and does not override a specific standard.
Worked example
When studying the current asset definition, focus on a controlled present economic resource rather than assuming a physical object is required.
Common mistake
The older title “Framework for the Preparation and Presentation of Financial Statements” is historical; do not mix obsolete definitions with the current Framework.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Supporting | July 2027–August 2028 |
| ACCA | SBR | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: Framework for the Preparation and Presentation of Financial Statements