International Accounting Standard Board

This presentation provides a brief discussion of the current content of the Conceptual Framework for Financial Reporting and IAS 1 Presentation of Financial Statements. It also explores proposed changes and amendments to IAS 1, including the importance of materiality and disclosure requirements about going concern. Additionally, it provides insights into the revised Conceptual Framework issued by the IASB in 2018.

The International Accounting
Standard Board

1.Brief discussion of the current
content of the following.
Conceptual Framework for Financial Reporting:
The conceptual framework can be defined as the set of idea that leads to the creation of
a consistent set of rules and standard. Its main purpose is to assist the UASB in developing and
revising IFRS that are based on the consistent concept. As per the conceptual framework, the
objective of the business financial reporting is to provide information that is useful for making
business and economic decisions. The framework states that the information should be made
accurately fairly that should be useful to the investors and lenders and useful for evaluating the
company's cash flow. The financial reporting should represent the company's asset,
liabilities,and owner's equity. The conceptual framework sets out the fundamental concepts for
financial reporting that guide in development of IFRS standards. It helps to ensure that the
standards are consistent and the transactions are treated the same way with the objective of
providing useful information to the users of financial information.

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IAS 1 Presentation of Financial Statements:
International accounting standard 1- Presentation of Financial Statements is an
international reporting standard that are adopted by the IASB. It lays down the guidelines for
the presentation of the financial statements by the company. It also includes the structure,
minimum requirement of the content and repeating of the concepts such as going concern, the
accrual basis of accounting. The standard requires the company to prepare a statement of
financial position, a statement of profit or loss and other comprehensive income, a statement of
changes in equity and statement of cash flows. IAS 1 implies the company to includes some
specific features of the financial statements. It includes the fairly presentation of statements and
complaints with IFRS, presented consistently across periods.

2.The propose changes or amendment
to the following.
IAS 1 Presentation of Financial Statements:
The amendments that ate in consideration is related to Information is material if omitting,
misstating or obscuring it could reasonably be expected to influence decisions that the
primary users of a specific reporting entity’s general purpose financial statements make on
the basis of those financial statements., the ED proposes some clarifications to the
explanation accompanying the definition of material. These proposals include:

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 Relocating some information that explains rather than defines material from the definition
into the explanatory paragraphs accompanying the definition.
 adding a description of the characteristics of the primary users of financial statements.
 noting that the consideration of the characteristics of users must be judged in the entity’s
circumstances.
 explaining that even well-informed and diligent users may need to seek the aid of an
adviser from time to time.
 highlighting that the materiality of information is assessed either individually or in
combination with other information.

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Another amendments are based ion the disclosure about going concern. It clarify the disclosure
requirement about the assessment of going concern in IAS 1 presentation of financial
statements. It includes:
 clarifying that materiality applies to the whole financial statements and that information
which is not material need not be presented in the primary financial statements or disclosed
in the notes.
 clarifying that some disclosures specified in standards are simply not important enough to
justify separate disclosure for a particular entity.
 making it clear that preparers should exercise judgement in presenting their financial
reports.

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Conceptual Framework for Financial Reporting:
During the 2011, many participation asked IASB to reactivate and finalise the conceptual
framework project given the multitude of open conceptual issues it is facing in many current
projects. The IASB decided to revise the Conceptual Framework because some important issues
were not covered and some guidance was unclear or out of date. The revised Conceptual
Framework, issued by the IASB in March 2018, includes:
 a new chapter on measurement.
 guidance on reporting financial performance.
 improved definitions of an asset and a liability, and guidance supporting these definitions.
 clarifications in important areas, such as the roles of stewardship, prudence and
measurement uncertainty in financial reporting.

REFERENCES
van Rensburg, C. J., Coetzee, S. A., & Schmulian, A. (2014). South African financial reporting
students' reading comprehension of the IASB Conceptual Framework. Journal of Accounting
Education. 32(4). 1-15.
Wells, M. J. (2011). Framework-based approach to teaching principle-based accounting
standards. Accounting Education. 20(4). 303-316.
Elkins, H. & et.al., (2017). Investigating capital structure through IAS 1: variations in disclosure
and measurement. International Journal of Accounting and Finance. 7(3). 209-233.
Schmidt, M. (2018). A Note on the Proprietary and Entity Perspectives in Financial Statements:
The Implications for two Current Controversial Issues. Accounting in Europe. 15(1). 134-147.