Conceptual Framework of Financial Reporting : Doc

Added on - Dec 2020

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Financial Reporting
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK...............................................................................................................................................31) Critically assessment of IASB's conceptual framework of financial reporting....................32) Entities applying the appropriate concept / assumptions to prepare financial statement.......5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
INTRODUCTIONFinancial reporting is essential to all organisation because it communicates financialinformation to shareholders like customers, employees which helps to take decision regardinginvestment their money into the company. Financial reporting includes income statement,balance sheet and change in equity shareholders which prepare for management reporting forinternal decision management that helps to accomplish the goals and objective of the company(Acharya and Ryan, 2016).Present report includes the overview of IASB concepts and its objective of financialreporting. further, fundamental concept and quality of financial reporting. It also explainingabout concept and principles are adopt by company while preparing financial statement of thecompany.TASK1) Critically assessment of IASB's conceptual framework of financial reportingOverview- International accounting standard board is an independent privately body.IFRS (International financial reporting standard) issue by IASB which specify that companymust maintain financial report that disclose all information to public. IASB was formed in 2001and currently 14 members present in this board.IASB prepare common rules and accounting language which helps to provide accurate,reliable, transparent information from company to company or company to world. Companymust prepare financial reporting by adopting concept and principle of accounting which isformulated by board.Objective of financial reporting -Financial reports are prepared by all organisation which leads to achieve goals and objectiveof the company (Adams, 2017). There are many objectives of preparing financial reporting-Financial reporting provides necessary financial information to manager which is requirefor planning, decision making and setting benchmarking that helps to achieve stated goalsat the predetermine time.Company prepare financial report that shows all information and position to shareholders,promoters which use to take decision related to investment and financial planning of thecompany.
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