What is the purpose of developing a conceptual framework?
A) To provide a coherent structure to accounting practice which had developed in an ad hoc way.
B) To guide standard-setters to develop standards based on the same concepts and principles, rather than in a piecemeal approach.
C) To guide users where there is no accounting standard covering an issue.
D) All of the given options are correct.

Question

Quizplus · Accepted Answer

A conceptual framework serves all of the purposes given in the options, including providing a coherent structure to accounting practice, guiding standard-setters in developing standards based on common concepts and principles, and guiding users where there is no accounting standard covering an issue.

What Is the Purpose of Developing a Conceptual Framework