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Conceptual Framework for Financial Reporting- PDF

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Added on  2020-11-23

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Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3Question 1 - Conceptual framework for financial reporting ......................................................3Question 2 - Elements used in preparing financial statement ....................................................4CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
Conceptual Framework for Financial Reporting- PDF_2
INTRODUCTIONFinancial reporting is the statement or disclosure of the information of companyperformance over a specific time period. This report is specially prepared for the investors,shareholder and customers to analyse the internal and external working of the organisation.According to International Accounting Standard Board (IASB) the main motive to preparefinancial report is that to examine the financial position of the organisation and helps the users inmaking economic decisions in the internal matters of the company. Report will include theconceptual framework for financial reporting and also its varieties of fundamental qualities andconcepts in the organisation. It also includes different assumptions important in preparingfinancial statement. MAIN BODYQuestion 1 - Conceptual framework for financial reporting Overview: Conceptual framework of IASB method is to prepare the financial statement of theorganisation. It set the standards norms in the reviews of the existing IRFS concepts. (Leuz andWysocki, 2016). By applying this procedure they can set the accounting polices standards andprepare a financial statement of the company. Objective: The main objective of financial reporting is to provide financial information of theorganisation to the investors, lenders, customers and government for effective decision makingprocess (Acharya and Ryan, 2016). This procedure helps the company to present their financialposition and internal performance and working to achieve targets within the specified timeperiod. Fundamental concepts: As per IASB the objects of accounting is to manage the systematicrecords and information of the business entries. IFRS standards set the norms as per accountingis that it disclose the complete facts and numbers in the reporting (Financial Reporting, 2019).Due to not applying the diminishing method in the business IASB apply the various polices inthe accounting procedure. To disclose all the information relating to income and expensesincurred in the organisation. Recognition: As organisation didn't stick to the diminishing method set by IFRS, It is theduty under IASB to follow the rules (Gaynor and et.al., 2016). It helps the business to
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