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Provide a brief background in your own words to the role of a conceptual framework in accounting, including benefits of having one, together with problems and criticisms of the current (2010) framework.

by | May 23

1) Provide a brief background in your own words to the role of a conceptual framework in
accounting, including benefits of having one, together with problems and criticisms of the
current (2010) framework. (3 Marks)
Page 2 Kaplan Business School Assessment Outline
2) In your own words and in your opinion, what should be the objective of general purpose
financial reporting? (3 Marks)
3) In your own words, explain what you understand by the term ‘prudence’. How can an
‘asymmetrically prudent’ accounting treatment lead to the understatement of income in
one period but an overstatement in future periods? (3 Marks)
4) a) In your own words, explain what is meant by the concept of substance over form.
You can use examples from within and/or outside accounting to help answer this
question. (3 Marks)
b) Do you agree with the board’s decision to state explicitly that a faithful
representation represents the substance of an economic phenomenon instead of
merely representing its legal form? Justify your answer. (3 Marks)

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