The importance of the conceptual framework of financial reporting in the public sector

The conceptual framework is the underlying concepts on the basis of which accounting standards are properly or continuously developed, or revised. The question that arises is what is the significance of the conceptual framework and what developments have taken place. For this purpose, the conceptual framework and the statements of its constituent concepts have been studied, analyzed and compared. The purpose of this study is to investigate and analyze the importance of the conceptual framework of financial reporting in the public sector. Understanding the conceptual framework helps to solve accounting and financial reporting issues and sets arbitration boundaries. Changing stakeholder information needs in the new environment may necessitate a revision of the conceptual framework.