The AASB Conceptual Framework for Financial Reporting incorporates the Conceptual Framework for Financial Reporting issued by the International Accounting Standards Board (IASB). This Conceptual Framework applies to: (a) for-profit private sector entities that have public accountability and are required by legislation to comply with Australian Accounting Standards; and (b) other for-profit entities that elect to apply the Conceptual Framework. The International Accounting Standards Board (IASB) released a revised Conceptual Framework in 2018. REQUIRED:

Briefly discuss the due process the International Accounting Standards Board (IASB) uses to develop accounting standards. (2 marks)

With reference to the revised IASB/AASB Conceptual Framework. Explain the three criteria in the definition of a liability contained in paragraphs 4.2-4.47. (1.5 marks).

Discuss the recognition criteria contained in paragraphs 5.6-5.25. (1.5 marks).