Name:Aliannel M.

Patigdas
Subject Title & Code: ACC 124-3417

CONCEPTUAL FRAMEWORK REFLECTION

A conceptual framework assists preparers of financial statements in developing accounting policies

for transactions that are not covered by the existing standards. According to the video that I have
watched and learned, it is stated that the Conceptual Framework is not the standard in accounting,
meaning it is not really necessary to use except if you want to be practical and you want a guide to avoid
bias financial statements. Mainly, the conceptual framework has an important role in accounting. It
contributes to transparency by enhancing the international comparability and quality of financial
information. By providing financial information, the reporting entity becomes useful to existing and
potential investors, lenders, and other creditors of the company.Through the use of a conceptual
framework, we can avoid developing random accounting standards and avoiding issues if the result is
inconsistent. A conceptual framework does not solve accounting problems, but if it is used consistently,
it could improve financial reporting. If we compare it to other situations in life, we can learn that having a
guide such as a conceptual framework could help us in our business, but remember, it is not a lifetime.
The guide just wants us to learn and grow so that we can take action by ourselves using our own ideas
and decisions until we can leave the other side of ourselves, which is the overthinker, and our trust issue
to ourselves. In short, the guide of the conceptual framework wants us to believe in ourselves to get the
trust of our investors and lenders, to make our financial status double, and to ensure the financial
information is not biased. It is because having a positive attitude and not defrauding others is the key to
business success.