Introduction The International Accounting Standards Board (Board) issued the revised Conceptual Framework for Financial Reporting (Conceptual Framework), a comprehensive set of concepts for financial reporting, in March 2018. The revised conceptual framework is built on the previous version of the Conceptual Framework to improve the gaps identified, thus enhancing the usefulness of financial statements to the users.

There are many debates regarding to the application of conceptual framework in financial reporting which help to enhance the transparency and disclosure of the information. Some accountants have questioned whether a conceptual framework is necessary in order to produce reliable financial statements, instead rule based accounting system has the attraction of financial statements being more comparable and consistent.

Critically evaluate the need of conceptual framework in financial reporting regime.