Lecture Topic 1(1)

Lecture Topic 1(1) - ACCT 2542 Session 2, 2010 Quiz 1 There...

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ACCT 2542 Session 2, 2010 Quiz 1 There is currently a debate as to whether the AASB should abandon the reporting entity concept as detailed in SAC 1 Definition of the Reporting Entity . Discuss the proposed revisions to determining which entities should be required to prepare general purpose financial statements . Proposals were put forward to do away with the reporting entity concept in favour of using a size and public accountability test for determining which entities should prepare a general purpose financial report. If an entity is publicly accountable and satisfies the size test, it must prepare general purpose financial reports which comply fully with the Australian equivalents of full IFRSs. If an entity is not publicly accountable and does not satisfy a size test, then it is proposed that it should merely use the Australian equivalents of the IFRS for small and medium entities (SMEs). Quiz 1 Discuss the changes to the objectives of financial reporting as contained in the IASB/FASB Exposure Draft (2008) An improved Conceptual Framework for Financial Reporting: Chapter 1: The Objective of Financial Reporting. The IASB and FASB joint project to change the conceptual framework has proposed, in the IASB ED of May 2008, to amend the objectives of general-purpose financial reporting in the conceptual framework to the following: “to provide financial information about the reporting entity that is useful to present and potential investors, lenders and other creditors in making decisions in their capacity as capital providers”. Hence, it seems that the proposed objective for the revised conceptual framework is going to
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Lecture Topic 1(1) - ACCT 2542 Session 2, 2010 Quiz 1 There...

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