Accounting principles and applicability of IFRS (Conceptual framework)

Publication date: 15 Nov 2018

Resources (This includes links to the latest standards, drafts, PwC interpretations, tools and practice aids for this topic)

Latest developments

In March 2018 the IASB issued a revised conceptual framework. The revised  framework sets out the Board’s latest thinking on the concepts that underlie the preparation and presentation of financial statements.


The IASB has the authority to set IFRS and to approve interpretations of those standards. IFRS is intended to be applied by profit-orientated entities. These entities' financial statements give information about performance, position and cash flow that is useful to a range of users in making financial decisions. These users include primary users: existing and potential investors, lenders, and other creditors, and other users: employees, suppliers, customers, governments and their agencies, regulators and the public, might find general purpose financial reports useful.

The concepts underlying accounting practices under IFRS are set out in the IASB's 'Conceptual Framework for Financial Reporting’ issued in March 2018 (the Framework). The main sections of the Framework are:

  • Status and purpose of the Conceptual Framework
  • The objective of general purpose financial reporting
  • Qualitative characteristics of useful financial information
  • Financial statements and the reporting entity
  • The elements of financial statements
  • Recognition and derecognition
  • Measurement
  • Presentation and disclosure
  • Concepts of capital and capital maintenance
  • Appendix – defined terms
  • Add Selected section
  • OR
  • Add Full document
  • Print Selected section
  • OR
  • Print Full document
  • Copy link
  • Add to my favourites

Warning, this action will download the whole document into PDF format.


Warning, this action will add the whole document to my documents.

Back to top