Influences that impacted the development
3. Evaluate the influences that impacted the development of the conceptual framework. There can be a variety of conceptual frameworks. There are also wide concepts of affects In conceptual framework, the influences that Impacted development of the CB include: the US experience, In the united States they have their own conceptual framework; they have not adopted either Fires or the SAAB Framework. Both the SAAB and the US Conceptual Frameworks are considered to have shortcomings.
As a result, the are jointly developing a revised conceptual framework. A revised conceptual framework s also necessary because of the joint efforts of the ASSAI and FAST to converge their accounting standards, with uniform accounting standards there is also a need to have a uniform conceptual framework. The needs to the capital markets, Economic focuses ignores transactions or events not resulting from market transactions or an exchange of property rights, It also Ignores environmental externalities that caused by business.
Financial statements included within reports reflect only financial performance and do not provide a means of assessing social or environmental performance. Search drawing from efficient market literature that impacted the thinking behind the CB. And moving on the convergence Initiative between the USA and ASSAI will see renewed interest in aligning the FAST framework with that of the SAAB.
The existing Conceptual Framework is not a Standard or Interpretation and does not override any specific Standard or Interpretation. In a limited number of cases, there may be a conflict between the Conceptual Framework and a Standard. Where there is a conflict, the requirements of the Standard prevail over the Conceptual Framework. However, because the Conceptual Framework will elude the SAAB when It develops and revises Standards, the number of these conflicts should diminish through time.
Although the Conceptual Framework should guide the ASSAI when it develops new Standards, there may be rare cases when applying some aspect of the Conceptual Framework does not produce financial information about the reporting entity that Is useful to the users of the financial statements. In such cases, the SAAB may decide that it needs to issue a new or revised Standard that conflict with that aspect of the Conceptual Framework in order to meet the overall objective of financial reporting.