IASB’s Revised Conceptual Framework of Financial Reporting: An Overview

  • Miss Aditi Kejriwal,


A set of comprehensive conceptual framework on financial reporting is imperative to develop new accounting standards or modify the existing one to standard-setting bodies. The Conceptual Framework (CF) 2018 is more extensive and descriptive than the earlier version of the conceptual framework. The structure of CF 2018 comprises an explanation of the introduction and the status, objectives of CF, eight chapters, and a glossary. The significant inclusion in CF 2018 is the concept of measurement, factors considered for determining measurement basis. It also covers the definition of assets, liability, income, and expenses and guidance on derecognition. The framework does not override the requirement of any standard. However, if there is any conflict or inconsistency between framework and a standard, the requirement in the standard takes precedence.

The paper attempts to present an overview of the Conceptual framework of financial reporting 2018 as published by the IASB. It also tries to make a comparative study highlighting the key changes from the previous version of the conceptual framework of financial reporting 2010. Further, it intends to study the implications of the 2018 conceptual framework on financial reporting.