FINANCIAL REPORTING & ANALYSIS of IASB Conceptual Framework for Essay

FINANCIAL inform & ANALYSIS of IASB Conceptual Framework for Financial Reporting - Essay ExampleThe fabric can cooperate the users of the designual framework in interpreting and analyzing the information existing within the financial statement as it provides an in-depth understanding of the principles on the basis of which the framework is produced.In theoretical concept the conceptual framework allow provide development in the accounting standard. But in practical the economic, social and political factors laugher a vital role in influencing the assistance that is provided by the standards. The various requirements of the regulators of capital market and the answer or response of the public towards the accounting issues and the situation of credit crunch which began in the year 2007 leave alone more often than not influence the process of standard setting (Kabalski, 2009).The framework that is developed for the preparation of financial statements includes the recognition, explanation and measurement of the various elements on the basis of which the financial statements are developed, the objective for preparation of financial statements and the concept of capital maintenance (Horngren, 1985).The Financial Accounting Standard Board and the International Accounting standard plug-in have developed a conceptual framework for the purpose of financial reporting. The main objective of introducing this framework understands the concept, the scope and characteristics that the entity is required to apply or adopt. Before the convergence of the accounting standards the accountants had to face many difficulties cod to the differences in the standard provided by the FASB and IASB.The criticism for conceptual framework is based on the epistemological and ontological hypothesis. Accounting is mainly based on the notion that is subjective in nature Example is the accountants generally play an important role in selecting proper accounting method and then applying t hem. Therefore