Iasb Conceptual Framework Of Financial Reporting

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2. IASB Conceptual Framework regulates the monetarily reporting IASB conceptual framework provides guidance to every reporting entity in preparing and presenting the financial report. Monetary recording is required in any annual report in order to show the accurate position of the business in terms of the extent of the number (Australian Accounting Standard Board 2007, p. 7). 2.1 The main objectives of general purpose financial reporting Many companies understand that in order to attract people fund in their entities and support them in their long- term operation, information of financial report are one of the most vital requirements for achieving this goal. By referring to the IASB Conceptual Framework of financial reporting in 2010,…show more content…
The data illustrates that how well the business deals with the transactions and what they normally spend the organization’s capital on with what extent of outcomes (Conceptual Framework 2010,OB 21). 2.2 Measurement of the elements of financial statements In terms of determining the value of monetary for each specific element that is to be recognized and placed in the various financial reports, numbers of measurements are applied in different situations, for example: under the Current Cost model, the assets that put in the progress of production are valued at the actual or estimated cost depending on the time the work takes place (International Accounting Standards Board 2010, 4.54). The most commonly used model in preparing any financial statements is Historical Cost and it is usually adopted with the combination of other cost models which would massively improve the efficiency and effeteness of recording (International Accounting Standards Board 2010, 4.56). 2.3 Concepts of Capital and Capital maintenance There are two types of concepts regarding to capital under the IASB Conceptual Framework: one is the financial concept of capital which indicates the invested monetary is similar to the net assets or equity of the organization; and the other one is physical concept of capital that based on the operating performance in terms of the numbers of outputs in every single production day for a certain period (International Accounting Standards Board
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