A. Discuss the benefits of the conceptual framework for preparers and users of financial statements.a. PreparersThere are two different approaches to apply when determining profits. These approaches are the asset/liability approach and the income/expense approach. The New Zealand framework and most conceptual frameworks use the active/liability approach. This framework helps preparers determine the definitions of assets and liabilities and the definitions of all other items that arise from them, such as expenses, income and equity. These elements are essential to ensure that preparers' financial statements are consistent, objective and qualitative. Additionally, the conceptual framework can be useful when there are no relevant accounting standards or other guides and conflicts of benefit exist. This framework also provides a basis for predicting and explaining accounting behavior and events. Finally, the conceptual framework is a measure for evaluating the quality of preparers and can therefore improve their skills.b. UsersThere are several types of users, but the primary users of financial statements are investors, lenders and other creditors. Therefore, the conceptual framework makes the financial statements coherent and logical. Moreover, with this framework, users receive more benefits when using financial statements, as they are clearly aware and able to recognize their deviation from the defined framework. At the same time, without a conceptual framework, interest groups often pressure standards bodies to promulgate haphazard and ambiguous rules and guidelines. Users also make better decisions because according to the conceptual framework, financial information...... middle of paper ...... with IFRS, these statements only examine these assets if they can be associated to future interest.8. GAAP allows minority interests (generally the interests of notable but non-majority investors) to be listed in equity on a separate line rather than in liabilities as under IFRS.9. With GAAP, deferred taxes are classified as current and non-current and there is no need to attach information describing temporary differences between amounts that can be recovered within 12 months from the balance sheet date and those that request it in more than 12 months. month. However, under IFRS, these taxes are only included as non-current taxes on the balance sheet and this footnote is required.10. Under GAAP, current and non-current assets and liabilities are divided, whereas under IFRS these items must be separated.