The Conceptual Framework provides the foundation for Standards and Accounting Guidelines that:
- contribute to transparency by enhancing the comparability and quality of financial information, enabling investors and other market participants to make informed economic decisions.
- 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.
- 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