Examination of Revised Version of the Conceptual Framework

Abstract

The purpose of this study is to examine the revised conceptual framework that is the joint work between the IASB and FASB and published in March 2018. The Conceptual Framework for Revised Financial Reporting is a a guidance to expresses the scope, basic concepts and measurement principles of the International Financial Reporting Standards. The study compares the revised conceptual framework with the 2010 version to display the main changes in eight chapters and appendix. According to the results, there are significant changes especially on the definitions of the asset, liability, income and expense. In addition, 2018 version of conceptual framework brings new concepts such as reporting entity or derecognition.