The publication of a revised version of the Conceptual Framework concludes a long-running project aiming at filling gaps, clarifying and updating existing guidance.
The Conceptual Framework describes the objective of, and concepts for, general purpose financial reporting. It is a practical tool that assists the IASB in developing and revising Standards that are based on consistent concepts. It also helps preparers to develop consistent accounting policies when no Standard applies or when a Standard allows a choice of accounting policy.
The Conceptual Framework is not a Standard and will not change or override any requirements of existing Standards. However, entities that develop accounting policies using the Conceptual Framework, or that are in any other way affected by the amendments to IFRS Standards, will have to apply the changes from 1 January 2020.