Is the conceptual framework a normative or positive theory

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The new Conceptual Framework for Financial Reporting was released by the International Accounting Standards Board (IASB) in 2018. Assume that this standard has been formally adopted by the Australian Accounting Standards Board (AASB), effective 01 January 2020.

Problem (a) Is the Conceptual Framework a normative or positive theory?

Problem (b) Please identify at least three groups within society that are likely to benefit from the development of a Conceptual Framework for Financial Reporting.

Problem (c) The IASB states: "The long-standing unresolved controversy about which measurement attribute to adopt - particularly between historical-price and current-price measures-and the unresolved puzzle of unit of account are likely to make measurement one of the most challenging parts of the conceptual framework." Provide an explanation of why measurement will be one of the most 'challenging' components of the conceptual framework.

Reference no: EM132782271

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