Accounting concept/framework/standard

[sandersen]

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Am doing ACCT2011 and reading about the structure of the conceptual framework.

I'm confused about accounting framework, concepts and standards. Can anyone give a quick run down?

"In Australia from 2005 we will no longer be using the entire contents of the conceptual framework..."

"Part of the conceptual framework that was developed in Australia (specifically two statements of accounting concepts) have been replaced..."

"It needs to be emphasised that the Australian conceptual framework is not an accounting standard..."

Whaattttt??????

[wheatcracker]

Mmmm...you've probably figured this out by now, but:

Originally Posted by sandersen

"In Australia from 2005 we will no longer be using the entire contents of the conceptual framework..."

"Part of the conceptual framework that was developed in Australia (specifically two statements of accounting concepts) have been replaced..."

Basically from 2005, Australia's conceptual framework consists of the AASB Framework (also the IASB Framework), SAC1 and SAC2. It used to be SAC 1, 2, 3 and 4. 3 and 4 got ditched because the IASB Framework already encompasses them.

Originally Posted by sandersen

"It needs to be emphasised that the Australian conceptual framework is not an accounting standard..."

The framework is just a guideline about how accounting standards should be set, whereas accounting standards are rules that have to be followed and are enforced by the Corporations Act.

...accounting

[sandersen]

Yeah, thanks though

Now there's just that essay to work out

[yren8514]

They just want to keep people busy I guess... I did not see any big difference