The Conceptual Framework of Accounting: Theory, Evolution, and Challenges in Modern Practice

Anneke Pratiwi; Suci Niawati Elisabet Sitohang; Ira Elisabeth Meysah Sihombing; Rismah Ayu Widodo; Ivonny Ade Maria Tamonob

doi:10.55927/metropolis.v1i2.259

Authors

Anneke Pratiwi Universitas Bina Sarana Informatika
Suci Niawati Elisabet Sitohang Universitas Bina Sarana Informatika
Ira Elisabeth Meysah Sihombing Universitas Bina Sarana Informatika
Rismah Ayu Widodo Universitas Bina Sarana Informatika
Ivonny Ade Maria Tamonob Universitas Bina Sarana Informatika

DOI:

https://doi.org/10.55927/metropolis.v1i2.259

Keywords:

Conceptual Framework of Accounting, Accounting Theory, Evolution of Financial Reporting Standards, Challenges of Modern Accounting

Abstract

This study investigates the relevance of the Conceptual Framework for Financial Reporting in addressing the complexities of modern business environments. Anchored in accounting theory, it qualitatively examines theoretical evolution, adoption trends, and gaps in intangible asset recognition, ESG disclosures, and cross-border IFRS comparability. Utilizing case studies, survey data, and global adoption statistics from 2010–2024, the research finds a persistent misalignment between financial reporting standards and stakeholder information needs. Results highlight declining earnings persistence, inadequate non-financial disclosures, and fragmented standard-setting initiatives. The study contributes to accounting discourse by urging a revision of the conceptual framework to better integrate sustainability, intangible valuation, and global comparability.

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