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ACCA Applied Knowledge · Financial Accounting · Qualitative characteristics of useful financial information

Which of the following statements about the status of the Conceptual Framework is correct?

Nothing in the Conceptual Framework overrides a specific IFRS Accounting Standard. It is not itself a standard, and where the IASB departs from it in a standard, the departure is explained. It applies to all general purpose financial reporting, not only group accounts.

  1. ANothing in the Conceptual Framework overrides a specific IFRS Accounting StandardCorrect
  2. BThe Conceptual Framework is itself an IFRS Accounting Standard and must be applied before other standards
  3. CThe Conceptual Framework takes precedence over a standard where the standard seems outdated
  4. DThe Conceptual Framework applies only to the consolidated statements of groups

Explanation

The Conceptual Framework is not a standard and does not override any specific standard or requirement. If the IASB decides to depart from it in a standard, it explains why. The other options wrongly give it standard status, precedence or limited scope.

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