Conceptual Framework

Question 1

Fair presentation of financial statements

Answer 1

Financial statements are faithfully represented by being;
Free from bias,
Complete,
Free from error.”

Question 2

Fundamental qualitative characteristics

Answer 2

Relevance
Faithful representation

Question 3

4 Enhancing qualitative characteristics

Answer 3

Understandability
Comparability
Timeliness
Verifiability

Question 4

Recognition criteria of the elements of financial statements

Answer 4

Probably future economic benefit
The item can be measure reliably

Question 5

What is the conceptual framework?

Answer 5

• The conceptual framework was made by the IASB in 2010 and was revised by the IASB in 2018 for further clarifications.
• It assists the IASB with consistent concepts
• Helps those who prepare financial statements where no standards apply
• It is not a standard and does not override any standard requirement
• IAS 1 states that financial statements must comply with IFRS and Conceptual Framework for financial reporting