You are the financial controller of a Hong Kong listed company. Your CEO has noticed that it takes a substantial amount of time to follow the Conceptual Framework to prepare the companys financial reports. As a result, he wants you to stop preparing the financial reports and concentrate on the core business development planning reports instead. As the financial controller, you need to explain to your CEO the following:

a What is the meaning of the Conceptual Framework? (5marks)

b What are the advantages and disadvantages of preparing financial reports based on a conceptual framework? (15Marks)