IASB Conceptual Framework for Financial Reporting

Understability of information enclosed in financial accounts is important for its bearing to the users. If the conducts of accounting involved and the aspects of presentation, the associated disclosers are too detailed for the user to comprehend despite having enough knowledge of the organization and a broad accountancy, this will affect the validity of the whole statement of finance because the user will be pushed to put their decisions of the economy on the information which undependable. Timeliness is where the information is available and accessible to those who make decisions on an opportune foundation before the need for a decision to be made. The information which is presented timely is more applicable to users while on the other hand, the delay in information provision tends to make it less logical to the decision-making requirements for the users.

Timeliness principle is more related to the relevance principle closely Bragg, S. In these events, the characteristics and events that lead to the change must be refilled in financial statements. Financial accounts of an organization must be compatible with other organizations within the same business line. This should help users in inspecting position and performance of one farm close the levels of the industry. It is important for an organization to embrace accounting strategies that reflect the current industry actions. Variability is where distinct observers agree freely that the information presented reliably. It also serves as a basic provider of objectives in financial reporting, whereby it enhances proper statements in financial concepts in one of the most simple but critical ways of measuring accounting and financial reporting.

Therefore, this is seen as a vital measure that helps in the generation and provision of important information related to accounting for those who might be willing to make credit decisions and investments in a particular manner that helps them understand a company's changing patterns and the financial resources of that particular company. Therefore, the conceptual framework in the regulation of financial reports tends to create a sense of confidence to the investors. It is therefore evident to say that a conceptual framework is normally used as a reference for the regulation of financial reporting due to the many and specific roles it plays in ensuring that the quality of financial reporting is well analyzed and up to the required standards of the International Financial Reporting Standards (IRFS).