Principles of financial reporting as laid down in a

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Unformatted text preview: size of the entity. Principles of financial reporting as laid down in a framework have nothing to do with the size of the entity, nor with the purpose of the entity. Principles are set in order to obtain a (best possible) view of reality. Abandoning or neglecting those principles on the basis of size of the company would mean that the larger the entity, or the smaller the entity, the lower the quality could be of the view of reality presented. Such would probably not be an acceptable proposition to those whose reward for providing resources is fully at risk. 6. Do financial statements and other types of financial reporting have similar objectives? Different types of financial reporting exist for different purposes. Financial reports might have as objective to report on only one, a limited number, or all of the aspects of the outcome of the conversion and exchange process. It is a matter of shared assumptions, concepts, values and practices that determines which of the different types of financial reports is called “...
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