TABLE OF CONTENTS 
When the Christmas festive season arrives and decorated spruce trees abound do you ever ask what is supporting the multi-coloured baubles and lights?
I doubt that you do as we simply take pleasure in the overall effect not consciously acknowledging the branches of the tree supporting this display. The Conceptual Framework of the IASB shares this attribute in that it is rarely a focal point when analysing financial statements and yet it is at the heart of every accounting standard ensuring consistency of terminology, recognition and measurement.
Every major GAAP has a conceptual core:
International GAAP = The Conceptual Framework
UK GAAP = The Statement of Principles
US GAAP = Conceptual Framework.
In 2006 the FASB and IASB issued a consultative document setting out their preliminary views on the first two chapters of a unified Conceptual Framework, marking another step in the progress towards a single global accounting rule set. However, the differences between the existing conceptual documents is quite modest as can be seen from a broad comparison of the subjects covered by the main chapters/sections of the UK and international versions (Table 3.1).
| The Conceptual Framework | Chapter/Sections | The Statement of Principles |
|---|---|---|
| The objective of financial statements | 1 | The objective of financial statements |
| Underlying assumptions | 2 | The reporting entity |
| Qualitative characteristics of financial statements | 3 | The qualitative characteristics of financial information |
| The elements of financial statements | 4 | The... |
