4 The International Accounting Standards Board (IASB) has begun a joint project

4 The International Accounting Standards Board (IASB) has begun a joint project to revisit its conceptual framework for

financial accounting and reporting. The goals of the project are to build on the existing frameworks and converge them

into a common framework.

Required:

(a) Discuss why there is a need to develop an agreed international conceptual framework and the extent to which

an agreed international conceptual framework can be used to resolve practical accounting issues.

(13 marks)

(a) The IASB wish their standards to be ‘principles-based’ and in order for this to be the case, the standards must be based onfundamental concepts. These concepts need to constitute a framework which is sound, comprehensive and internallyconsistent. With