Final answer:
The conceptual framework plays a crucial role in both IFRS and US GAAP accounting standards.
Step-by-step explanation:
The International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP) are two sets of accounting standards used by companies around the world. The role of the conceptual framework in both IFRS and US GAAP is to provide a foundation for developing consistent and reliable financial reporting standards. The conceptual framework establishes the concepts and principles that guide the preparation and presentation of financial statements.
For example, the conceptual framework helps in determining the recognition, measurement, and disclosure of assets, liabilities, income, and expenses. It provides definitions and guidance on key accounting concepts such as relevance, reliability, and substance over form. Both IFRS and US GAAP have their own conceptual frameworks, but they are similar in many respects.