International Accounting Standard Board

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.