On or about 14 January 2019, the Accounting Standards Council issued a revised Conceptual Framework for Financial Reporting which is based on the revised Conceptual Framework issued by the International Accounting Standards Board (IASB) in 29 March 2018.

For companies that use the Conceptual Framework to develop accounting policies when no IFRS Standard applies to a particular transaction, the revised Conceptual Framework is effective for annual reporting periods beginning on or after 1 January 2020, with earlier application permitted.

The Conceptual Framework sets out the fundamental concepts for financial reporting that guide the Board in developing International Financial Reporting Standards (IFRS Standards). It helps to ensure that the Standards are conceptually consistent and that similar transactions are treated the same way, so as to provide useful information for investors, lenders and other creditors.

The Conceptual Framework also assists companies in developing accounting policies when no IFRS Standard applies to a particular transaction, and more broadly, helps stakeholders to understand and interpret the Standards.

Source: IFRS, 2 April 2019