FINANCIAL REPORTING & ANALYSIS Essay Example | Topics and Well Written Essays - 1500 words

FINANCIAL REPORTING & ANALYSIS - Essay Example counting standards include a constant approach towards solving of problems and do not present a sequence of ad hoc reactions that deal with the accounting issues. The main function of the framework is to support the International Accounting Standard Board in the progress of consistent and coherent accounting standards. The conceptual model is not referred to a standard, although it directs in the preparation of financial statement in order to facilitate them to determine accounting issues. It is an extremely influential and important document which helps the users to understand the function as well as the limitation of the financial reporting (Ruppel, 2010). The conceptual framework is an existing subject because it is being amended as a combined project with the International Accounting Standard Board’s American Counterparts; the FASB (Financial Accounting Standard Board). However, the conceptual framework is being criticised for not accomplishing its functional goals, mainly that of offering a base for directing standard-setting and resolving accounting arguments. The main rationale behind this project is to highlight the criticism of financial accounting and problems with prevailing conceptual framework. The aims of universal purpose financial reports are also taken into consideration. The purpose of the theoretical/conceptual framework is to build up an enhanced framework which offers a sound base for developing the future accounting models. Such a structure is crucial in fulfilling the Board’s objective of developing benchmarks that are value based, internally reliable, and that show the way to the financial reporting; which gives the information to the capital providers who requires to make judgments in their capability as wealth providers. Moreover, the new Financial Accounting Standard Board framework will be constructed on the prevailing framework (Fasb, 2014). Although the prevailing conceptual framework has assisted the International Accounting