Final answer:
Milton Friedman's economic theories have impacted the development of the Conceptual Framework by emphasizing the importance of transparent liability reporting, which shapes accounting standards and practices.
Step-by-step explanation:
Among the economic philosophers mentioned, Milton Friedman had a significant impact on the development of the Conceptual Framework of Financial Reporting, especially concerning liability reporting. Friedman's economic theories emphasize the importance of transparent financial reporting and the representation of the financial reality of an entity without political or managerial interference. His contributions laid the groundwork for principles within the Conceptual Framework that ensure liabilities are reported in a manner that reflects their economic substance rather than their legal form.
Accounting theories influenced by Friedman's philosophy contribute to a clearer understanding of what constitutes a liability, the conditions under which those liabilities should be recognized, and how they are measured and reported. These theories are incorporated into accounting standards and help guide the Financial Accounting Standards Board (FASB) in establishing consistent, clear, and relevant standards for liability reporting. This is essential for the reliability and comparability of financial statements, contributing to the proper functioning of the U.S. free enterprise system.