Conceptual

CONCEPTUAL FRAMEWORK: FINANCIAL REPORTING FRAMEWORK

PURPOSE AND SCOPE

Purpose

To assist the Board of IASB in:

 developing future IFRSs and reviewing existing IASs

 promoting harmonisation of regulations etc by providing a basis for reducing the number of alternative accounting treatments permitted by IFRSs

 To assist national standard setting bodies in developing national standards.

 To assist preparers of financial statements in applying IFRSs and in dealing with topics that have yet to form the subject of an IFRS.

 To assist auditors in forming an opinion as to whether financial statements conform to IFRSs.

 To assist users of financial statements in interpreting information contained in financial statements prepared in conformity with IFRSs.

 To provide those who are interested in the work of IASB with information about its approach to the formulation of IFRSs.

In short to provide a conceptual framework as a foundation for the preparation and appraisal of accounting standards.

Scope

The framework covers the following areas and requires them to be applied to accounting events and transactions that an entity may encounter.

 Objective of financial statements.

 Underlying assumptions.

 Qualitative characteristics that determine the usefulness of information in financial statements.

 Definition, recognition and measurement of elements.

 Concepts of capital and capital maintenance.

CONCEPTUAL FRAMEWORK: FINANCIAL REPORTING FRAMEWORK

PURPOSE AND SCOPE

Purpose

To assist the Board of IASB in:

 developing future IFRSs and reviewing existing IASs

 promoting harmonisation of regulations etc by providing a basis for reducing the number of alternative accounting treatments permitted by IFRSs

 To assist national standard setting bodies in developing national standards.

 To assist preparers of financial statements in applying IFRSs and in dealing with topics that have yet to form the subject of an IFRS.

 To assist auditors...