A conceptual framework, such as the International Accounting Standards Board (IASB) Framework, provides some fundamental assumptions about the role of general purpose financial reporting and the attributes that financial information should possess for it to be useful in assisting the resource allocation decisions of financial statement readers. As indicated in this chapter, the United States’ Financial Accounting Standards Board (FASB) defined a conceptual framework as ‘a coherent system of interrelated objectives and fundamentals that can lead to consistent standards’. Briefly explain with examples
