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IASB's conceptual framework

   

Added on  2021-01-01

7 Pages1340 Words345 Views
Financial reporting
IASB's conceptual framework_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1IASB's conceptual framework for financial reporting................................................................1Objective of financial reporting..................................................................................................1Fundamental Quality...................................................................................................................2Enhancing Quality.......................................................................................................................2TASK 2............................................................................................................................................3Appropriate concepts that are used while generating financial statements.................................3Basic assumptions.......................................................................................................................3CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
IASB's conceptual framework_2
INTRODUCTIONFinancial reporting refers to the formulation of financial statements that are used toanalyse organisation's performance and strength. These are generated by management of thecompany and presented to the external shareholders such as investors, shareholders, creditors,suppliers and customers (Nobes, 2014). This report is based on IASB's conceptual frameworkthat are used in financial reporting. Certain concepts and important elements that are consideredwhile formulating financial statements are also discussed under this project report.TASK 1IASB's conceptual framework for financial reportingFinance is very important for an organisation to accomplish its targets and run all theoperations effectively. Financial reporting is the process of recording financial data in differentstatements that are used to analyse business's performance. These statements are presented infront of stakeholders such as investors, shareholders, creditors etc. of business enterprise andthey make make strategic decisions with the help of such statements. The InternationalAccounting Standard Board is liable to make conceptual framework which is important forfinancial reporting (Ball, Jayaraman and Shivakumar, 2012) It proves that standard referencesdocument for developing a perfect accounting standards. The frameworks can be explained as atheoretical base or statement of principles. It supplies different information regarding accountingstatements, these informations are explained below:It assures that IASB is not overriding any concept or standard of IFRS.This determines that accounting standards have ability to provide approaches to problemresolution or not.This is not said to a standard, but rather act as a leader while formulating financialstatements in order to enable them to resolve accounting related issues.The frameworks are used to figure out various natures of reporting entity that addressimportant questions about generation of final reports.Objective of financial reportingThe main objective of financial reporting is to provide transparent and accurateinformation to stakeholders of the organisation that can guide them while taking investing1
IASB's conceptual framework_3

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