Question

Which of the following is not a function of the IASB's conceptual framework?

a) The conceptual framework provides guidance to standard setters to help them develop high quality standards
b) The conceptual framework provides guidance to practitioners when individual standards to not apply
c) The conceptual framework includes specific implementation guidance to enable consistent application of particular complex standards
d) The conceptual framework emphasizes a "true and fair representation" of the company

Answer 1

The IASB's conceptual framework does not provide specific implementation guidance for complex standards. It is intended to guide standard setters, help practitioners in situations without specific standards, and ensure a 'true and fair representation' in financial statements.

Step-by-step explanation:

The IASB's conceptual framework serves several functions, but it does not include specific implementation guidance for the application of complex standards. The purposes of the conceptual framework are to:

• Provide guidance to standard setters in developing high-quality standards.
• Offer guidance to practitioners when existing standards do not directly apply to a situation.
• Emphasize a 'true and fair representation' of a company's financial position and performance.

While the framework sets out the objectives and concepts that underpin the preparation and presentation of financial statements, it is not designed to provide detailed implementation instructions for specific accounting scenarios. This is more commonly addressed within the individual standards issued by the IASB.