Global Standards for the world economy

Monday 25 January 2021

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Conceptual Framework

Conceptual Framework

 Conceptual Framework

The Conceptual Framework describes the objective of, and the concepts for, general purpose financial reporting. It is a practical tool that:

  1. assists the Board to develop IFRS Standards that are based on consistent concepts;
  2. assists preparers to develop consistent accounting policies when no IFRS Standard applies to a particular transaction or event, or when a Standard allows a choice of accounting policy; and
  3. assists others to understand and interpret the Standards.

The objective of the Conceptual Framework project is to improve financial reporting by providing a more complete, clear and updated set of concepts. To achieve this, the Board is building on the existing Conceptual Framework—updating it, improving it and filling in the gaps instead of fundamentally reconsidering all aspects of the Conceptual Framework.

Project stages

Issued documents