It is against this background that International Accounting Standards Board (IASB) has continued to make efforts aimed at making the work of the accountant in the preparation of financial statements as easy and well consolidated into the qualities mentioned earlier as possible. Most of these efforts have been done through the preparation of the Conceptual Framework for Financial Reporting, commonly referred to as the conceptual framework (IFRS and IASB, 2012). As global business operations remain a dynamic phenomenon, one would notice a sense of constant change with the approach to financial reporting (EFRAG, 2014). It is against this background that the IASB is making plans on reviewing its existing IASB to align better with the changing nature of global business.The need to have a common global language when it comes to financial reporting was the need for setting up the International Financial Reporting Standards (IFRS) (IFRS, 2012). Together with IASB, the IFRS has always acknowledged the need to having a documented conceptual framework. On the whole, the purpose of such a document can be said to be the need to have a common a single medium through which the concepts that underlie the preparation and presentation of financial statements will be presented (FASB 2014). This means that the need for the conceptual framework is purposely to have an avenue through which all accountants across the globe can a single reference point in their practice, especially when it comes to the preparation of financial statements. Already, the importance of financial statements has been emphasized. With the important role that financial statements play, one would constantly want to question what makes a good financial statement and what makes a bad financial statement. The answer to this question is what makes the need to have a conceptual framework documented for the IASB purposeful.