Readers will be aware that all companies listed on a regulated European market will be required to prepare their consolidated accounts in accordance with endorsed International Accounting Standards from 2005 onwards.
The International Accounting Standards Board (IASB) issued its 'Framework for the Preparation and Presentation of Financial Statements' in 1989. This is referred to as its conceptual framework.
The framework sets out the concepts that shape the preparation and presentation of financial statements for external users. The framework does not have the status of an accounting standard as also is the case with the 'Statement of Principles' from the UK Accounting Standards Board (ASB). The IASB framework assists the IASB: