Conceptual Framework for Financial Reporting

The Conceptual Framework for Financial Reporting is a set of guidelines used by accountants and financial professionals to develop and understand financial statements. It outlines the objectives of financial reporting, the qualitative characteristics of useful information, and the definitions of key elements like assets, liabilities, and equity. Essentially, it helps ensure that financial reports are consistent, transparent, and useful for making informed decisions. By providing a foundation for financial reporting, it aims to enhance the credibility and comparability of financial information across different organizations.