1.%20Conceptual%20Framework - International Financial Reporting Standards Conceptual Framework for Financial Reporting Joint World Bank and IFRS

1.%20Conceptual%20Framework - International Financial...

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International Financial Reporting Standards The views expressed in this presentation are those of the presenter, not necessarily those of the IASB or IFRS Foundation. © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. Conceptual Framework for Financial Reporting Joint World Bank and IFRS Foundation ‘train the trainers’ workshop hosted by the ECCB, 30 April to 4 May 2012 K The views expressed in this presentation are those of the presenter, not necessarily those of the IASB or IFRS Foundation.
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© 2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. Role of the Conceptual Framework Conceptual Framework sets out agreed concepts that underlie financial reporting objective, qualitative characteristics, element definitions, … IASB uses Conceptual Framework to set standards enhances consistency across standards enhances consistency over time as Board members change provides benchmark for judgments Preparers use Conceptual Framework to develop accounting policies in the absence of specific standard or interpretation IAS 8 hierarchy 2 © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK.
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© 2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. 3 Objective of financial reporting Provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity Note: other aspects of the Conceptual Framework flow logically from the objective (CF.OB1) Conceptual Framework sets out the concepts that underlie IFRS financial statements and assist the IASB in the development of future IFRSs and in its review of existing IFRSs (CF.Purpose and Status) © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK.
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© 2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. 4 Objective of financial reporting Investors’, lenders’ and other creditors’ expectations about returns depend on their assessment of the amount, timing and uncertainty of (the prospects for) future net cash inflows to the entity. Decisions by investors about buying, selling or holding equity and debt instruments depend on the returns that they expect from an investment in those instruments, eg dividends, principal and interest payments or market price increases. Decisions by lenders about providing or settling loans and other forms of credit depend on the principal and interest payments or other returns that they expect . © IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK.
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© 2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. 5 Objective of financial reporting To assess an entity’s prospects for future net cash inflows, existing and potential investors, lenders and other creditors need information about: the resources of the entity; claims against the entity; and how efficiently and effectively the entity's management
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