Conceptual Framework |

Assessing information quality for measurement

The Conceptual Framework provides the foundation for Standards and Accounting Guidelines that:

  1. contribute to transparency by enhancing the comparability and quality of financial information, enabling investors and other market participants to make informed economic decisions.
  2. strengthen accountability by reducing the information gap between the providers of capital and the people to whom they have entrusted their money. Standards and Accounting Guidelines based on the Conceptual Framework provide information needed to hold management to account. As a source of comparable information, those Standards and Accounting Guidelines are also of vital importance to regulators.
  3. contribute to economic efficiency by helping investors to identify opportunities and risks, thus improving capital allocation. For businesses, the use of a single, trusted accounting language derived from
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Conceptual Framework for Financial Reporting

Just as an introduction some language thoughts to better understand what we are talking about.International Financial Reporting Standards 2

Conceptual: consisting of concepts Conceptual Framework for Financial Reporting

Concept: an abstract or generic idea generalized from particular instances Conceptual Framework for Financial Reporting

Framework: a basic conceptual structure (as of ideas) Conceptual Framework for Financial Reporting

So that is a lot of concepts!


It shows implicit that it is about ideas, thoughts and/or notions. It is likely to suggest the result of reflecting, reasoning or meditating rather than of imagining. So it is the result of a due care thought process to enhance the understanding of Financial Statements and the IFRS standards defined to contribute to transparency, strengthen accountability and contribute … Read more