Conceptual Framework for Financial Reporting(exposure ).pptVIP

Conceptual Framework for Financial Reporting (exposure draft) FASB IASB Conceptual Framework for Financial Reporting 1.The Objective of Financial Reporting; 2.Qualitative Characteristics and Constraints of Decision-useful Financial Reporting Information 3.Definations of elements of financial statements 4.The unit of account 5.Recognition and derecognition of elements of financial statements 6.Initial and subsequent measurement of elements in financial statements 7.The concept of a reporting entity Preface principles-based standards vs rules-based standards The Objetive of financial reporting OB2:The objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to present and potential equity investors,lenders,and other creditors in making decisions in their capacity as capital providers. Information that is useful to capital providers may also be useful to other users of financial reporting who are not capital providers. objective OB3. The Boards’ mandate is to assist in the efficient functioning of economies and the efficient allocation of resources in capital markets by developing high-quality financial reporting standards. The objective pertains to financial reporting, which includes but is not limited to financial statements, and thereby provides a more complete basis on which to achieve these outcomes. Objetive OB4:General purpose financial reporting is directed to the needs of a wide range of users rather than only to the needs of a single group. General purpose financial reporting stems from the information needs of users who lack the ability to prescribe all the financial information they need from an entity and therefore must rely,at least partly, on the information provided in financial reports. objective OB5. The information provided by general purpose financial reporting focuses on the needs of all capital providers (those wit