Explain the conceptual framework, and discuss why it is important to the accounting profession. In your opinion, do all professional accountants use the conceptual framework in their daily work activities, and if so, how?
The conceptual framework is technically what makes up the financial reporting aspect of accounting, and how information is or should be presented. Think of the conceptual framework as a coherent system of principles and objectives that are all interrelated to and with each other. The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have been working for many years on trying to develop a conceptual framework, which would basically allow all "users" of accounting data to be on the same page, across the globe.
By setting a conceptual framework, everyone would be using the same accounting standards, there would be a solid basis for resolving disputes over how accounting transactions are recorded or handled, and it would provide as fundamental principles for the accounting profession ...
The solution explains the conceptual framework and discusses why it is important.