My topic is conceptual frameworks

FINANCIAL ACCOUNTING THEORY
CONCEPTUAL FRAMEWORKS
Table of Contents
Introduction    3
Purpose    3
Financial Accounting    3
Financial Reporting    3
Qualitative Characteristics    4
Fundamental Qualitative Characteristics    4
Enhancing Qualitative Characteristics    4
Impact on Future    5
Conclusion    5
References    6
Introduction
Conceptual framework can be considered as an idea with objective that will help to develop a consistent set of standards and rules (Barker et al. 2020). In view of accounting, this conceptual framework helps in effective financial reporting. The Australian Accounting Standards Board (AASB) in Australia is responsible for developing a conceptual framework, which further helps in designing and evaluating accounting standards. These standards act as a guideline to prepare financial statements in standardised form. They reflect the nature, function and limits of these statements. All the business entities in Australia are liable to present financial reports as a mandatory requirement from AASB (AASB, 2019).
Purpose
The purpose behind designing the conceptual framework is to describe the objective of preparing financial statements. It helps to maintain the consistency in maintain records, easy to understand and can be interpreted by stakeholders. As per the circumstances, the Board can revise it by amending the standards or adding new elements to the agenda. It contributes with transparency and helps to take informed decisions (AASB, 2019). It reduces the information gap between company and stakeholders like customers, employees, investors, suppliers, government agencies etc. It helps to identify various risks and opportunities available with business currently.
Financial Accounting
Accounting deals with range of financial information, which is presented to external environment to state the progress of the company. It has three features: Review helps to evaluate the books prepared by accountants to check their documentation and accuracy, reconciliations helps to compare the stated and recorded transactions. The more the similarity the more they are authenticated and adjustments help to analyse the performance through reporting structure. If the adjustments failed to be up to the...