"UNIVERSITY NAME:ANNUAL REPORTACCOUNTING STANDARDSPROFFESOR’S NAME: STUDENT’S NAME: DATE:Conceptual frameworkTABLE OF CONTENTSConceptual accounting………………………………………………………………………………1Users of financial accounting………………………………………………………………..……2Users list…………………………………………………………………………………………………….3Prudence……………………………………………………………………………………………………4Application of prudence…………………………………………………………………………….5Research…………………………………………………………………………………………………….6-20Conclusion……………………………………………………………………………………………………21References…………………………………………………………………………………………………...22QUESTION Does the current accounting framework meet the needs of the users of financialreports as prescribed in the objective of the Conceptual Framework of Accounting?ANSWER: Yes, accounting framework meets the needs pf the users of financial reports asprescribed in the objective of the conceptual framework of accounting. A conceptualframework is a connected set of some ideas and theories about how a particular functions or isrelated to its parts. It serves as the basis to understand the interrelated patterns like events,ideas, concepts and interpretations.The conceptual framework is the recent and fresh1 Conceptual frameworkconcept. There are many setters of accounting standards which have operated withoutconceptual framework in the workplace.This may resulted in very hazardous in nature andmostly became reactive for any issue rather than being active. The shortage of the conceptualframework also enhances the uncertainty that the accounting standards are not consistent andhence showed no existence in preparing financial statements. Conceptual framework helps inthe development and enhancement of the accounting standards. External factors such as social,economic, political factors influenced the accounting standards. The conceptual framework isalways concerned with making of financial reports including consolidated reports of thecompany. Financial statements are always prepared annually and which is directed towards thefinancial information towards the various users (Gray & Owen & Adams, 2010). Financial statements are the major door of the financial information of the given company. There are three components of financial statements:financial position statement, a statement,income statement, a statement of cash flows, details of information etc. Many entities presentfinancial information that describes the financial performance.The foremost basic motive of financial information is to make financial statements for thecompany which is fruitful for the present and coming investors in making fruitful decision. Theprimary objective of the financial information is mainly focused on the information needs ofmany users. According to conceptual framework, the users of financial statements includesemployees, investors, preset and potential investors, creditors, customers, government andmany agencies (Gigglier& Hemmer, 2010).2 "