The Revised Conceptual Framework: New Ground Rules

Without a framework for preparing financial statements, accounting standards would develop in a random, haphazard way, in reaction to arising issues. In this context, the Conceptual Framework—though not itself a standard—serves as a common ideology by which the International Accounting Standards Board (IASB) interprets existing standards, develops new ones, and defines accounting positions in difficult cases. For instance, the Conceptual Framework assists national standard-setting bodies in developing national standards.

On 29 March 2018, the IASB released a revised Conceptual Framework for Financial Reporting. Effective immediately, it replaces the previous version issued in 2010.¹