The main purposes of the Conceptual Framework include which of the following?

• A. All of the above
• B. Assist development of future IFRS and review of existing standards
• C. Promote harmonisation by reducing the number of permitted alternative accounting treatments
• D. Assist preparers of financial statements in applying IFRS

Answer: (D)

The Conceptual Framework exists mainly to help those preparing financial statements apply IFRS. It provides the underlying definitions, concepts, and guidance that inform judgments and measurements, making it possible to prepare consistent and reliable financial statements. While it also supports standard-setters in developing and reviewing standards and aims to promote harmonisation by narrowing the range of acceptable treatments, its everyday, practical value for practitioners is in guiding preparers through the application of IFRS. That practical assistance is why this option is the best fit.