The Conceptual Framework is a simple concept tells us the simple models that trigger the presentation and preparation of financial statements for users

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FINANCIAL REPORTING-      COURSEWORK ESSAY

NAME : MOHD. FAZLEH FARHAN

ID : H00117489

The Conceptual Framework is a simple concept tells us the simple models that trigger the presentation and preparation of financial statements for users. It assists the Board of IASC (International Accounting Standard Committee) in developing accounting standards and determining accounting issues that are not addressed directly. It also assist preparers of financial statements in applying International Accounting Standards and in dealing with topics that have yet to form the subject of an International Accounting Standard.

The Framework deals with the objective to provide information to help present and potential creditors and investors and others to measure the timing, amounts and improbability of the entity’s future cash outflows and inflows. This information is vital in order to generate cash inflows and deliver profits to creditors and investors.

The Framework addresses the financial reporting including consolidated financial statements. To meet these common needs, financial statements are prepared and presented annually for a wide range of external users in an enterprise. Thus, it doesn’t automatically apply to financial reports such as prospectuses and computations prepared for taxation purposes which are outside the scope of the Framework.

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Stewardship contributes an important aspect to financial reporting, which should be reflected by precise acknowledgement in the objectives of financial reporting. Stewardship should be considered as a broader view than resources allocation as it emphases on both earlier performances and how the entity is positioned for the future.

Objective of Financial Statement

The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions. Financial statements also show the results of the stewardship of management, ...

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