Title: Conceptual framework for financial reporting 2018: a critical review

Authors: Ujjal Mondal

Addresses: Department of Accounting and Information Systems, Bangabandhu Sheikh Mujibur Rahman Science and Technology University, Gopalganj, 8100, Bangladesh

Abstract: International Accounting Standard Board (IASB) issued the conceptual framework for financial reporting (hereafter CF) 2018 in September 2018 for a comprehensive guideline for financial reporting. This study finds out the constraints and criticisms of CF 2018 by analysing the structure and components of CF 2018. This study also shows the significant amendments to IFRS standards based on the CF 2018. Therefore, based on the desk-based analysis the findings state that eight major IFRS standards have been amended with reference to CF 2018. Besides, CF 2018 fails to demonstrate the effect of stewardship and prudence in whole documents; assets, liabilities, income and expenses may not be fully recognised and measured based on their definitions. Overall, CF 2018 does not provide prescriptions to develop new practices rather it approves the existing practices.

Keywords: conceptual framework for financial reporting; IFRS; International Accounting Standard Board; IASB; Financial Accounting Standard Board; FASB.

DOI: 10.1504/IJCA.2021.120532

International Journal of Critical Accounting, 2021 Vol.12 No.5, pp.429 - 443

Received: 11 Dec 2020
Accepted: 04 Aug 2021
Published online: 24 Jan 2022 *

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