In what ways are the finance definition of 'relevance' and the Conceptual Framework definition similar?
Definition Of Relevance And Conceptual Framework
The conceptual framework can be defined as an accounting theory that is issued by the organization issuing the accounting standard. The conceptual frameworks discuss issues of accounting and the ways to deal with these issues.
Answer and Explanation:
The conceptual framework is the collection of issues and ideas that helps in creating standards that are aligned to achieve the objective of laws, regulation, and fair presentation.
The relevance in accounting means the information that can help the users of financial statements to form a decision.
The definition of conceptual framework and relevance is similar in the following ways:
- Both highlights the issues in accounting.
- Both Assist auditors and those who prepare financial statements to put the best standards in dealing with an issue.
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from Corporate Finance: Help & ReviewChapter 8 / Lesson 7