The conceptual framework is a group of ideas or principles used to plan or decide something as it seen as a set a guiding principles with ideas and concepts that influence and direct decisions being made in a particular area. Normative theories are generally to be prescriptive in that they guide how we "should" or "ought" to behave. The conceptual framework is regarded to be a normative theory; that is it prescribes principles that guide companies when preparing their financial statements. The current framework (2010) details one objective being to provide information that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity. Further to that, it assesses how entities' governing board and management are able to effectively and efficiently discharge their responsibilities to use the entity's resources. Australia and New Zealand have traditionally taken the neutral approach in having transactions and events common to all sectors being accounted for in the same way by all entities. In 2005, the Australian accounting standards adopted IFRS and minor changes were made in the public and not for profit sector as a result of its adoption. However, it appears that the continuation of this approach may be inconsistent with the 2010 conceptual framework. The IFRS tend to shift its focus of standard setting being relevant to capital markets as opposed to non-capital market entities While there is an extensive uptake of IFRS around the world, concerns are starting to emerge regarding institutional differences in culture, legal, taxation, political systems that may lead to non-comparable accounting despite similar accounting standards. On the other hand, in the accordance with the current conceptual framework, the IASB has limited users to investor, lenders and other creditors. The Chairman of the AASB expressed 'dismay' at the IASB's decision and made amendments to reflect the differing objectives of the NFP sector when it adopted the IASB conceptual framework in 2013. As mentioned above, Australia currently takes the transaction neutral approach. New Zealand also took this approach until it was modified in light of its conclusion that user needs could not be adequately addressed by a single set of accounting standards, and that a multi-standard approach should be adopted. Reasons why one approach should not be taken