IASB Conceptual Framework 2018 ( Effective from 2020) - Part I

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Throughout this article I am going to discuss about a major change in accounting which is going to happen in near future.i.e IASB has introduced a new conceptual framework that will be applicable from 01st January 2020 on wards.

What is a Conceptual Framework ?
" Conceptual Framework for Financial Reporting" is a document which provides the Concepts and Objective of General Purpose Financial Reporting.

This is know as the foundation or the base for all the accounting standards.

What is the Evolution of Conceptual Frameworks ?

International Accounting Standard Board (IASB) issued the first conceptual framework in 1989 which was known as " Framework for the preparation and presentation of financial statements."

Later in 2010, IASB revised the framework and introduced a framework called " Conceptual Framework for Financial Reporting ". This is the framework applicable from 2010 to present (2010).

However due to some facts such as incompleteness and need improvements, IASB came up with a new conceptual framework in 2018. However this framework will be applicable in 01st January 2020.

So what are the main changes in Conceptual Framework 2018 compared to Conceptual Framework 2010

So in my next Article I will give you a summary of Conceptual Framework 2018. Please be in touch.

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References and Sources used to Write the Article

https://www.ifrs.org/issued-standards/list-of-standards/conceptual-framework/

https://www.ifrs.org/projects/2018/conceptual-framework/

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Article Written By : H.Harshana Sameeraka ( Bsc Accounting (Special) First Class (Gold Medal Winner), CA Passed Finalist with pending Viva(Prize Winner), Reading For CIMA SCS, Audit Supervisor KPMG)

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