The Conceptual Framework for Financial Reporting

11748 Words Nov 1st, 2011 47 Pages
Conceptual Framework

The Conceptual Framework for Financial Reporting
The Conceptual Framework was issued by the IASB in September 2010. It superseded the Framework for the Preparation and Presentation of Financial Statements.

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IFRS Foundation

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Conceptual Framework

CONTENTS paragraphs FOREWORD

THE CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING
INTRODUCTION Purpose and status Scope CHAPTERS 1 2 3 4 The objective of general purpose financial reporting The reporting entity to be added Qualitative characteristics of useful financial information The Framework (1989): the remaining text Underlying assumption The elements of financial statements Recognition of the elements of financial statements Measurement of the elements of financial
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to assess the stewardship or accountability of management. to assess the ability of the entity to pay and provide other benefits to its employees. to assess the security for amounts lent to the entity. to determine taxation policies. to determine distributable profits and dividends. to prepare and use national income statistics. to regulate the activities of entities.

The Board recognises, however, that governments, in particular, may specify different or additional requirements for their own purposes. These requirements should not, however, affect financial statements published for the benefit of other users unless they also meet the needs of those other users. Financial statements are most commonly prepared in accordance with an accounting model based on recoverable historical cost and the nominal financial capital maintenance concept. Other models and concepts may be more appropriate in order to meet the objective of providing information that is useful for making economic decisions although there is at present no consensus for change. This Conceptual Framework has been developed so that it is applicable to a range of accounting models and concepts of capital and capital maintenance.

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IFRS Foundation

Conceptual Framework

Purpose and status
This Conceptual Framework sets out the concepts that underlie the preparation and presentation of financial statements for
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