Framework BV2009

Framework BV2009 - Formatted: English U.K. Framework for...

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© IASCF Framework for the Preparation and Presentation of Financial Statements The IASB Framework was approved by the IASC Board in April 1989 for publication in July 1989, and adopted IASB in April 2001. Formatted: English U.K.
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2 © IASCF CONTENTS parag PREFACE INTRODUCTION Purpose and status Scope Users and their information needs THE OBJECTIVE OF FINANCIAL STATEMENTS Financial position, performance and changes in financial position Notes and supplementary schedules UNDERLYING ASSUMPTIONS Accrual basis Going concern QUALITATIVE CHARACTERISTICS OF FINANCIAL STATEMENTS Understandability Relevance Materiality Reliability Faithful representation Substance over form Neutrality Prudence Completeness Comparability Constraints on relevant and reliable information Timeliness Balance between benefit and cost Balance between qualitative characteristics True and fair view/fair presentation THE ELEMENTS OF FINANCIAL STATEMENTS Financial position Assets Liabilities Equity Performance Income Expenses Capital maintenance adjustments RECOGNITION OF THE ELEMENTS OF FINANCIAL STATEMENTS The probability of future economic benefit Reliability of measurement Recognition of assets Recognition of liabilities Recognition of income Recognition of expenses MEASUREMENT OF THE ELEMENTS OF FINANCIAL STATEMENTS 9
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© IASCF CONCEPTS OF CAPITAL AND CAPITAL MAINTENANCE 10 Concepts of capital 10 Concepts of capital maintenance and the determination of profit 10
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4 © IASCF The Framework has not been amended to reflect the changes made by IAS 1 Presentation of Financial Statements (a revised in 2007). Preface Financial statements are prepared and presented for external users by many entities around the world. Althoug financial statements may appear similar from country to country, there are differences which have probably been by a variety of social, economic and legal circumstances and by different countries having in mind the needs of d users of financial statements when setting national requirements. These different circumstances have led to the use of a variety of definitions of the elements of financial statements; for example, assets, liabilities, equity, income and expenses. They have also resulted in the use of different criteria recognition of items in the financial statements and in a preference for different bases of measurement. The scope financial statements and the disclosures made in them have also been affected. The International Accounting Standards Committee (IASC) is committed to narrowing these differences by see harmonise regulations, accounting standards and procedures relating to the preparation and presentation of fi statements. It believes that further harmonisation can best be pursued by focusing on financial statements that are p for the purpose of providing information that is useful in making economic decisions. The Board of IASC believes that financial statements prepared for this purpose meet the common needs of mos
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This note was uploaded on 02/22/2012 for the course ACCOUNTING 402 taught by Professor Sanaabadry during the Spring '12 term at DISD.

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Framework BV2009 - Formatted: English U.K. Framework for...

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