What Is an International Conceptual Framework for Financial Reporting
- Submitted by: mohamed17
- Views: 1463
- Category: Other
- Date Submitted: 10/31/2010 08:56 AM
- Pages: 2
- Report this Essay
Question 2
What is an international conceptual framework for financial reporting?
The IASB says the Framework for the Preparation and Presentation of Financial Statements is an accounting framework that sets out the concepts that underlie the preparation and presentation of financial statements for external users. A typical framework includes guidance on the objective of financial statements, the nature of the reporting entity, the qualitative characteristics of financial information, the elements of financial statements, recognition, measurement, presentation and accounting for interests in other entities.
Why might one be useful?
The Framework assists a number of potential users including:
IASB
Assists the IASB in the future development of consistent International Financial Reporting Standards and in the review of existing Standards. It helps IASB to promote the harmonisation of regulations, financial reporting standards and procedures relating to the presentation of financial statements by providing a basis for reducing the number of alternative accounting treatments permitted by International Financial Reporting Standards.
Auditors
Assists auditors in forming an opinion as to whether financial statements conform to International Financial Reporting Standards. Helps auditors to understand the IASB’s approach to formulating international standards and the nature and function of information reported in financial statements. Assists auditors faced with new or emerging issues to carry out an initial analysis in the absence of applicable national or international accounting standards
Preparers
Assists preparers in the preparation of financial statements by helping them to understand the IASB’s approach to formulating national and international standards and the nature and function of information reported in financial statements. As with the Auditors above, it helps preparers faced with new or emerging issues.
Users
Assists users...
What is an international conceptual framework for financial reporting?
The IASB says the Framework for the Preparation and Presentation of Financial Statements is an accounting framework that sets out the concepts that underlie the preparation and presentation of financial statements for external users. A typical framework includes guidance on the objective of financial statements, the nature of the reporting entity, the qualitative characteristics of financial information, the elements of financial statements, recognition, measurement, presentation and accounting for interests in other entities.
Why might one be useful?
The Framework assists a number of potential users including:
IASB
Assists the IASB in the future development of consistent International Financial Reporting Standards and in the review of existing Standards. It helps IASB to promote the harmonisation of regulations, financial reporting standards and procedures relating to the presentation of financial statements by providing a basis for reducing the number of alternative accounting treatments permitted by International Financial Reporting Standards.
Auditors
Assists auditors in forming an opinion as to whether financial statements conform to International Financial Reporting Standards. Helps auditors to understand the IASB’s approach to formulating international standards and the nature and function of information reported in financial statements. Assists auditors faced with new or emerging issues to carry out an initial analysis in the absence of applicable national or international accounting standards
Preparers
Assists preparers in the preparation of financial statements by helping them to understand the IASB’s approach to formulating national and international standards and the nature and function of information reported in financial statements. As with the Auditors above, it helps preparers faced with new or emerging issues.
Users
Assists users...