The History Of Conceptual Framework Accounting Essay

Developing a conceptual model is an impossible possibility ‘it is difficult to state that this statement is incorrect or non. First, there is no accurate or unequivocal position of what constitutes a conceptual model, but there is no uncertainty that conceptual model assisting a development of academic theory, meanwhile, it is besides provide a great trade of prescription. Developing a conceptual model is executable and promising. In this issue, I will explicate what is the conceptual model? Why do we need to develop a conceptual model? Introduce some information about its history and discourse the disadvantage or advantage of developing a conceptual model. After, name some possible jobs about model.

What is the conceptual model?

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There is no unequivocal sentiments of what is the conceptual model, the FASB in the United defined it as ‘a coherent system of interconnected aims and basicss that is expected to take to consistent criterions ‘ ( Aims of Financial Reporting by Business Enterprises, 1978 ) I think a conceptual model is used in research to sketch possible of action and analyses the advantage or disadvantage to show a preferable attack to an idea or thought. For illustration, the CEO can analyse the current market environment to judge what the planetary mark that company need to developed. Meanwhile, conceptual model are a type of intermediate theory, it can link to all facets of enquiry. For illustration, the job definition, intent of study, literature reappraisal, dates aggregation. Conceptual model is different to empirical enquiry that depending upon research inquiry or job. On the other manus, I consider model have besides been used to explicate struggle theory, within these struggle models, seeable and unseeable variables map can be clear by constructs of relevancy.

The different definition of IASB and FASB

Conceptual model has a different definition for IASB and FASB, IASB ‘s conceptual model normally is described in the papers, FASB ‘ conceptual model is a series of concept statements. Both of them are working to develop an improved hereafter common conceptual model and supply a sound foundation for developing future accounting criterions.

Why do we need to develop a conceptual model?

The FASB is the most direct donee of the model. The model provides two facets of benefits to the Board ; one is a foundation for puting criterions, another is constructs to utilize as tools for deciding accounting and coverage inquiries ( )

In my positions, the model contributes to greater efficiency in the standard-setting procedure, it means avoid some argument about cardinal issues, like ‘what is a liability? ‘ in the facet of academic field, the model is used to steer the development of accounting criterions, it can ease the proviso of just or impersonal information, the carnival and impersonal information enables users to do right determination. Consequently, developing the model is helpful to advance the efficient allotment of resources, like, the accounting theory cognition can be sensible used by accountant. On the one manus, the organic structure of constructs should to do regulations and relate to fiscal study ; a soundly developed conceptual model enables the IASB to publish more utile and consistent dictums over clip. It means a consistent criterion should ensue. So, if framework have no a soundly development, the counsel by it will influent standard-setting based on single constructs.

In other words, standard-setting can non establish on personal conceptual models ; it will take to incorrect decisions about indistinguishable or similar issues than it did antecedently. As a consequence, past determinations is non treat as future 1s, criterions can non be consistent with one another. Furthermore, the conceptual model should be paying attending to users ‘ understanding about fiscal coverage. On the other manus, the development of conceptual model should work out new or emerging jobs rapidly, like some alteration of market or study, the model should pay attending to update uninterruptedly.

The history of conceptual model

Plato ‘s conceptual model is the beginning of current model. A long clip ago, objects in nature were unstable, they ever changed, but the ‘knowledge ‘ must ne’er alter, it leads to the signifier of theory and it is besides the most celebrated conceptual models in history. ( http: // )

Now, for many old ages development of accounting criterions, the conceptual model was applied by many states. For illustration, the United Kingdom ‘s Accounting Standards Board initiated a conceptual model development undertaking in 1991. But, the recommendations related to accounting had been released in the United Kingdom in the 1940s.

At the beginning of the conceptual model, it was used for sorting footings, the purpose of developing a common nomenclature in some countries. With the development of academic cognition, this represents a personal conceptual model, based on the writer ‘s thought on the topic. Before long, a common linguistic communication, a system of categorization and the cardinal beginnings of a theory are developed, the more experience would gained by larning based on conceptual model, like the research of world and treatment of the literature, conceptual model has a fast development.

The advantage or disadvantage of developing a conceptual model

Najam besides discuss some advantages of conceptual models, foremost, the development of a conceptual model demand to supply equal definitions of constructs and measuring ; 2nd, conceptual models facilitate the research worker sort the thoughts, 3rd, it is of import that non merely are the substantial consequences of research understood, but besides that the indispensable constructs by user who utilizing the consequences. Fourth, good development of a conceptual model can heighten communicating between faculty members, who speak different linguistic communications and avoid reader have a inexplicit premise and constructs unconsciously. Last, the conceptual model allows the elucidation of premises, frames of mention. ( “ NGO Accountability: A conceptual model ” , Development Policy Review, PP.339-353 )

Meanwhile, Nordstrom ( the writer ) besides discussed fiscal accounting criterions board ‘s ( FASB ) conceptual model, they consider that there are two ways about developing the conceptual model. First, its development facilitates the instruction of those unfamiliar, like some ill-defined academic or hard theory. Second, the description of bing pattern allows the formal statement of general regulations, it means leting the development of new, consistent regulations for new state of affairss, the probe of conceptual model would get down by current pattern so that see a higher degree of abstraction. The other ground for making a conceptual model is to supply prescriptions of future pattern, like how to decide unsettled inquiries. Miller see a good model is utile to steer a standard scene organic structure, the procedure will go efficient, like the users who keep different flied be able to pass on with others, on the same footing of apprehension, Nordstrom gave their thought that developing conceptual model is of import. ( The Field Course in Geography: A Conceptual Framework, PP. 267-272 )

In drumhead, the conceptual model was encouraged by a reasonable and clear treatment in a peculiar state of affairs ; it is besides benefits to the organic structure of cognition in the subject.

I am naming my sentiments. foremost, conceptual model act as a instructor and be used for pedagogic intent to present a subject is a good beginning, the users is easier to utilize bibliography which flows from the literature reappraisal and doing a farther probe, model like a tool assisting the apprehension of the topic, the development of theoretical account allow the reader to better hold on the information which they want to cognize. For illustration, pupil is easier to understanding the accounting topic ; grasp the chief point of theory cognition by utilizing the conceptual model.

A 2nd benefit of developing the conceptual model is that it leads to the designation of insufficiencies in current state of affairs, the usage of a conceptual model allow the reader decide these jobs, it is besides leting for enhance exercising and avoid hazard. The 4th benefit is that the conceptual model promote more argument to take topographic point, the theoretical account development leads to more academic argument, through the argument, the jobs can be solved efficaciously.

For the disadvantages, the conceptual model is non used for individual users ; possibly person thought model is non suited for him. In add-on, in some development states, the fiscal system or community system is non hardy. The fast development of conceptual model is non suited for them. Meanwhile, the conceptual model will take to the fiscal information tend to complexness and many users is hard to use it, ( hypertext transfer protocol: // ) .

What the chief jobs about the conceptual model to accounting criterions?

Following, I will discourse some job about the conceptual model to accounting criterions. The users are worrying some possible job about the development of a conceptual model. I think there are several points about the jobs. First, accounting criterion should be more consistent and logical, because of the accounting criterion was developed from an older constructs, it should based on the footing of in agreement rules, as the FASB and IASB ( Bullen and Crook, 2005, p.1 ) province ‘to be principles-based. Standards can non be a aggregation of conventions but instead, must be rooted in the cardinal constructs. If the accounting criterion is know aparting in the facet of theory or model will take to a hard definition about the academic cognition. Second, the standard-setters are responsible for their determinations ; the duty must be enhanced, the thought behind specific demands should be more expressed, they besides should give a item account about their thought and let to feedback from the reader. The 3rd is about communicating, the standard-setters should be enhanced reappraisal of users, and the criterions should be more evident, the users will hold a better apprehension of why they are describing. Sometimes, holding a conceptual model possibly relieve some of political force per unit area when accounting criterions are developed, in a sense, model can supply a defences against political onslaught.


In this essay, I province the definition of conceptual model of mine, it is used for analyses the advantage or disadvantage to show a preferable attack to a idea or thought, conceptual model is besides a type of intermediate theory to link to all facets of enquiry.

Then, give some background information about the history of conceptual model. Finally, I discuss the advantage or disadvantage of developing a conceptual model, present my positions: 1. conceptual model act as a instructor and be used for pedagogic intent to present a subject. 2. The development of theoretical account allows the reader to better hold on the information which they want to cognize. 3. It leads to the designation of insufficiencies in current state of affairs. 4. Promote more argument to take topographic point.

After so, I give some suggestions about developing the conceptual model to accounting criterions. 1. Accounting criterion should be more consistent and logical. 2. The standard-setters are responsible for their determinations. 3. The standard-setters should be enhanced reappraisal of users.


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