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The conceptual framework of accounting, also called the theoretical framework of accounting is a coherent system of interrelated objectives and fundamentals that can lead to consistent standards and that prescribes the nature, function and limits of financial accounting and financial accounting statements. It is the constitution of accounting. This framework has been created, developed or decreed on the basis of the needs of accountants and the users of financial information. It is usually backed up by authority and professional pronouncements of the accounting profession. The pervasive use of the framework rests upon its general recognition and acceptance by the accountants and the users of financial statements.

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