Critically discuss this statement taking into consideration the accounting principles, concepts and the focus of general purpose financial reporting outlined by the Conceptual framework.
The IASB Conceptual Framework for Financial Reporting (the ‘Conceptual Framework’) sets out the concepts that underlie the preparation and presentation of financial statements. According to Hines (1980), the ontological assumption underpinning the ‘Conceptual Framework’ is that the relationship between financial accounting and economic reality is unidirectional, reflecting or faithfully reproducing relationship which presuppose that economic … Read more