A Closer Look to the Conceptual Framework

Abstract

The Purpose of the Present article is to examine ways in which
a statement of financial reporting objectives (Conceptual
Framework) can be expected to improve the quality of company
financial reporting. it is argeud here that there is considerable
confusion surrounding the function of a CF, especially over the
ways in which a CF can be expected to assist a financial
accounting policy-making body.
The paper examines a four - row model: Variables, objectives,
attributes to be measured and the measurement approach. The
Variables include: Net assets, Return on Investment and Inflows
& Out-Flows of Resources. The cost is the attribute to be
measured. The paper concludes that none of the CF seem to have
been of obvious value to the standard setters . Academic
researchers have tried in a variety of ways to throw some light on
the issues and problems involved. The conclusions of such
research works have been discouraging to those in the profession
interested in developing a conceptual framework that is capable
of putting the accounting standards programme on a
"sound footing".