You are the financial controller of a USA listed company. Your chief executive officer 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 report s and concentrate on the core business development planning reports instead. As the financial controller, you need to explain to your chief executive officer the following:

a What is the meaning of the Conceptual Framework?

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