In general, primary sources must be looked at first for how to treat an issue. If primary sources do not deal with the specific issue, the entity should use accounting policies that are consistent with the primary sources. The policies should also be developed through the use of professional judgement in accordance with the concepts in Section 1000, which is the conceptual framework. (The conceptual framework is the foundation of financial reporting and is examined in greater detail in Chapter 2.) As business is constantly changing and new business transactions and contracts are regularly entered into, the other listed sources are also important sources of GAAP.An icon reads, I F R S. Under IFRS, GAAP incorporates the following, which include guidance that is integral to the standard:31IFRSInternational Accounting Standards (IAS) (standards that were issued by the IASB's predecessor)32Interpretations (IFRIC or the former Standards Interpretation Committee [SIC])What happens when a company has an accounting issue but the above do not specifically apply? In that case, management uses professional judgement, considering the conceptual framework and the applicability of similar IFRS in similar situations, as long as the resulting information is relevant and reliable. The following sources would be considered, in descending order:pronouncements of other standard-setting bodiesother accounting literatureaccepted industry practicesThe two hierarchies achieve similar purp