Asked by Nicholas Grenville on Jul 14, 2024
Verified
Which of the following statements about the Conceptual Framework is true?
A) The Conceptual Framework deals only with the objective of special purpose financial statements.
B) The Conceptual Framework for Financial Reporting provides guidelines intended to meet the information needs of a range of users who are able to command that reports be prepared to their own particular needs.
C) The Conceptual Framework deals only with the objective of general purpose financial statements.
D) the Conceptual Framework for Financial Reporting, SAC 1, and SAC 2 provides guidelines on the preparation of financial statements for a specific group of users.
Conceptual Framework
The conceptual framework in accounting is a system of interrelated objectives and fundamentals that provides the foundation for financial accounting and reporting standards.
General Purpose Financial Statements
Financial reports intended to meet the needs of various users who are not in a position to demand custom reports tailored to their information needs.
Special Purpose Financial Statements
Financial statements designed to meet specific needs of users that are not addressed by standard financial statements, often required by contractual or regulatory requirements.
- Understand the objectives and guidelines provided by the Conceptual Framework for Financial Reporting.
Verified Answer
BK
Beyza KuralJul 17, 2024
Final Answer :
C
Explanation :
The Conceptual Framework primarily focuses on the objectives of general purpose financial statements, aiming to provide information that is useful to a wide range of users for making economic decisions. It does not limit its scope to special purpose financial statements or to the needs of a specific group of users.
Learning Objectives
- Understand the objectives and guidelines provided by the Conceptual Framework for Financial Reporting.