On 29 March 2018, the International Accounting Standards Board (IASB) has issued a revised version of its Conceptual Framework for Financial Reporting. The Conceptual Framework sets out the fundamental concepts of financial reporting that guide IASB in developing IFRS Standards. It helps to ensure that the Standards are conceptually consistent and that similar transactions are treated the same way, providing useful information for investors and others.
The Conceptual Framework also assists companies in developing accounting policies when no IFRS Standard applies to a particular transaction; and it helps stakeholders more broadly to understand the Standards better.
The revised Conceptual Framework includes a new chapter on measurement; guidance on reporting financial performance; improved definitions and guidance, particularly in the definition of a liability; and clarifications in important areas, such as the roles of stewardship, prudence and measurement uncertainty in financial reporting.
The IASB will start using the revised Conceptual Framework immediately, whereas companies will use it from 2020.
More details on the revised Conceptual Framework can be viewed from the International Financial Reporting Standards (IFRS) website.
Source: IFRS, 1 April 2018