Which of the following statements best describes the IFRS conceptual framework?
A)It provides a set of rules for accountants to follow.
B)It provides concepts, since accounting is based on nature of law.
C)It helps equity investors interpret the earnings per share.
D)It provides a basis for preparing and presenting financial statements.

Question

Quizplus · Accepted Answer

The IFRS conceptual framework provides a basis for preparing and presenting financial statements. It sets out concepts, definitions and objectives that shape accounting standards and allow for consistent and transparent financial reporting. It is not a set of rules, rather a framework that guides the development of accounting standards. It is also not specifically aimed at helping investors interpret earnings per share, although this can be a valuable outcome of applying the framework correctly.

Which of the Following Statements Best Describes the IFRS Conceptual