In line with these comments by the Chairman of the International Accounting Standards Board (IASB), principle-based IFRS education (figure 1), has been proposed by Barth (2008) and Coetzee and Schmulian (2011). The foundation of this pedagogical approach is that students ought to be taught the concepts as contained in the Framework for the Preparation and Presentation of Financial Statements (1989) (now replaced with the Conceptual Framework for Financial Reporting (2010)1). A Conceptual Framework is the foundation on which Financial Reporting Standards are based. When students understand the foundational concepts contained within a Conceptual Framework, they will be able to apply judgment in accounting for economic events (Barth 2008). Further, given that a Conceptual Framework is not subject to as frequent revision as the Financial Reporting Standards which it underlies, the students are provided with a more enduring knowledge of financial reporting.
This article considers the content of the Conceptual Framework for Financial Reporting, prior to proposing a pedagogical approach to the teaching thereof.
This article is from the Accounting Instructors’ Report, an electronic journal that provides teaching tips and insights to those who teach accounting and other business courses.
Stephen A. Coetzee*, University of Pretoria, South Africa
Astrid Schmulian, University of Pretoria, South Africa