Ī reporting entity's economic resources and claims are reported in the statement of financial position. Information about the claims and payment requirements assists users to predict how future cash flows will be distributed among those with a claim on the reporting entity. Information about the nature and amounts of a reporting entity's economic resources and claims assists users to assess that entity's financial strengths and weaknesses to assess liquidity and solvency, and its need and ability to obtain financing. Information about a reporting entity's economic resources, claims, and changes in resources and claims However, these are not considered a primary user and general purpose financial reports are not primarily directed to regulators or other parties. The IFRS Framework notes that other parties, including prudential and market regulators, may find general purpose financial reports useful. They will need to consider pertinent information from other sources as well. The IFRS Framework notes that general purpose financial reports cannot provide all the information that users may need to make economic decisions. The primary users need information about the resources of the entity not only to assess an entity's prospects for future net cash inflows but also how effectively and efficiently management has discharged their responsibilities to use the entity's existing resources (i.e., stewardship). The primary users of general purpose financial reporting are present and potential investors, lenders and other creditors, who use that information to make decisions about buying, selling or holding equity or debt instruments, providing or settling loans or other forms of credit, or exercising rights to vote on, or otherwise influence, management’s actions that affect the use of the entity’s economic resources. concepts of capital and capital maintenanceĬhapter 1: The Objective of general purpose financial reporting.financial statements and the reporting entity.qualitative characteristics of useful financial information.the objective of general purpose financial reporting.If the IASB decides to issue a new or revised pronouncement that is in conflict with the Framework, the IASB must highlight the fact and explain the reasons for the departure in the basis for conclusions. The Framework is not a Standard and does not override any specific IFRS. This elevation of the importance of the Framework was added in the 2003 revisions to IAS 8. In making that judgement, IAS 8.11 requires management to consider the definitions, recognition criteria, and measurement concepts for assets, liabilities, income, and expenses in the Framework. In the absence of a Standard or an Interpretation that specifically applies to a transaction, management must use its judgement in developing and applying an accounting policy that results in information that is relevant and reliable. The Framework's purpose is to assist the IASB in developing and revising IFRSs that are based on consistent concepts, to help preparers to develop consistent accounting policies for areas that are not covered by a standard or where there is choice of accounting policy, and to assist all parties to understand and interpret IFRS. Status and purpose and status of the Framework Please note that we are in the process of updating this page. Framework for the Preparation and Presentation of Financial Statements (the Framework) was approved by the IASC BoardĬonceptual Framework for Financial Reporting 2010 approved by the IASBĬonceptual Framework for Financial Reporting 2018 (the Framework) publishedĪmendments under consideration by the IASB
0 kommentar(er)
