Conceptual framework

1. Review the accounting standards NZ IAS 2, NZ IAS 10, NZ IAS 16 and NZ IAS 37. Outline how accounting standards are structured. Your outline should include sections that are common to most standards, and brief (one sentence) explanations of what each section provides.

2. Define (i) relevance and (ii) faithful representation, and identify the three key elements each must contain as per the conceptual framework. Include citation of relevant paragraphs or subparagraphs, in the format (Paragraph 2.12).

3. Is there a trade-off between relevance and faithful representation? What alternatives are possible if such situations arise? Briefly discuss, with reference to relevant conceptual framework paragraphs. Answers must be in your own words (do not simply quote conceptual framework paragraphs).