Conceptual Framework

Conceptual Framework

Section A

The Conceptual Framework for Financial Reporting

The Conceptual Framework was issued by MASB in November 2011. The Conceptual Framework is applicable for the preparation and presentation of financial statements in accordance with MFRS framework or FRS framework.

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Conceptual Framework

CONTENTS paragraphs

THE CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING

INTRODUCTION Purpose and status Scope CHAPTERS 1 2 3 4 The objective of general purpose financial reporting The reporting entity to be added Qualitative characteristics of useful financial information The remaining text Underlying assumption The elements of financial statements Recognition of the elements of financial statements Measurement of the elements of financial statements Concepts of capital and capital maintenance 4.1 4.2–4.36 4.37–4.53 4.54–4.56 4.57–4.65 QC1–QC39 OB1–OB21

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IFRS Foundation

Conceptual Framework

Introduction

Purpose and status

This Conceptual Framework sets out the concepts that underlie the preparation and presentation of financial statements for external users. The purpose of the Conceptual Framework is: (a) (b) to assist the MASB in the development of future MFRSs/FRSs and in its review of existing MFRSs/FRSs; to assist the Board in promoting harmonisation of regulations, accounting standards and procedures relating to the presentation of financial statements by providing a basis for reducing the number of alternative accounting treatments permitted by IFRSs; [Reason: This provision is not applicable.] (c) to assist national standard-setting bodies in developing national standards; [Reason: This provision is not applicable.] (d) to assist preparers of financial statements in applying MFRSs/FRSs and in dealing with topics that have yet to form the subject of a MFRSs/FRSs; (e) (f) to assist auditors in forming an opinion on whether financial statements comply with MFRSs/FRSs; to assist users of financial statements in...