The International Accounting Standards Board (IASB) has finalised a revised (2018) conceptual framework for financial reporting.

Refer to the following IASB web pages and documents (they may not open in all web browsers) and any other sources of relevance to help you answer the questions below:

1) Provide a brief background about the role of a conceptual framework in accounting, including benefits of having one, together with problems and criticisms of the current (2010) framework.

2) in your opinion, what should be the objective of general purpose financial reporting?

3) explain what you understand by the term 'prudence'. How can an 'asymmetrically prudent' accounting treatment lead to the understatement of income inone period but an overstatement in future periods?

4)

a) explain what is meant by the concept of substance over form. You can use examples from within and/or outside accounting to help answer this question.

b) Do you agree with the board's decision to state explicitly that a faithfulrepresentation represents the substance of an economic phenomenon instead of merely representing its legal form? Justify your answer