A conceptual framework can be easily developed for accounting Essay

A conceptual framework can be easily developed for accounting. Critically evaluate this statement and provide examples to illustrate your answer - Essay Example Solomons emphasized that the accountants must not distort the financial statement to favor one or more parties to the detriment of the other equally interested parties (Solomons 1996). A conceptual framework can be easily developed for accounting. The prior pen and pencil manual recording of business transaction has metamorphosed into the current software based recording of business transactions. FASB and IASB published Conceptual frameworks as guides for the preparation of financial reports. The WorldCom, Enron, and other accounting scandals have precipitated to the U.S. Sarbanes Oxley Act. Presently, there is a move to harmonise the U.S. conceptual framework and the U.K. conceptual framework (King 2006). Interested parties contribute their inputs to increase the ease in formulating the conceptual framework of accounting. A conceptual framework serves as a guide in the preparation of accounting report. A conceptual framework can be easily developed for accounting. Further, the conceptual framework is a group’s painstaking endeavor. Persons and groups from different fields of interest meet to share their opinions, suggestions, comments, and criticisms during the proposal to create a new conceptual framework. Each party will try to make the finalized concept benefit its needs and wants. Finally, a compromised version is approved by a majority of the conceptual framework making group. The approved conceptual framework is then published in accounting journals and explained in the latest accounting textbooks. The companies, especially those listed in the London stock exchange, will incorporate the latest approved conceptual framework in the preparation of its financial statements. Furthermore, accounting is grounded on a conceptual framework. The conceptual framework is to present a fair and true accounting of the daily business operations of the company. Accounting is the language of business. Thus, different parties use the