ABSTRACT
The role of a ‘conceptual framework’ is to provide a structure for thinking about what is ‘better’ accounting and financial reporting. It is a theoretical endeavour with the practical aim of clarifying the objectives of financial reporting, and how alternative practices are likely to help achieve those objectives. Whether as a company director, a chief accountant, an auditor or an accounting standard setter, one cannot make a rational choice of accounting procedures without some framework of principle. The purpose of the FASB project and other similar studies is to discover how much common agreement there is about objectives and the means to those objectives.
