The questions in this section require you to do some research. Bullet-point answers without
explanations are discouraged.
(a) What is a conceptual framework in accounting? How can the conceptual framework help users and
preparers understand accounting requirements and financial statements?
(b) Why is accounting said to be political in nature? How can a conceptual framework help in the setting
of accounting standards?
(c) It is claimed by some that the reason for conceptual frameworks in accounting is to protect the
accounting profession rather than improve accounting practice. Explain the basis of this claim.
(d) In 500 words or less, describe and summarise the current situation as of November 2014 in the
development of a conceptual framework in accounting in Australia and internationally.
The overall word limit for Section A is 1,200 words. Words in excess of this limit will not be marked.