International Financial Reporting Standards : A Practical Guide, Sixth Edition
An acceptable coherent framework of fundamental accounting principles is essential for preparing financial statements. The major reasons for providing the framework are to: 1) identify the essential concepts underlying the preparation and presentat...
| Main Authors: | , , |
|---|---|
| Format: | Publication |
| Language: | English |
| Published: |
World Bank
2012
|
| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000356161_20110411025920 http://hdl.handle.net/10986/2288 |
| Summary: | An acceptable coherent framework of
fundamental accounting principles is essential for preparing
financial statements. The major reasons for providing the
framework are to: 1) identify the essential concepts
underlying the preparation and presentation of financial
statements; 2) guide standard setters in developing new
accounting standards and reviewing existing standards; 3)
assist preparers in preparing financial statements and
dealing with topics that are not covered by a specific
International Financial Reporting Standard (IFRS); 4) assist
auditors in forming an opinion as to whether a set of
financial statements conforms with IFRS; and 5) assist users
in interpreting the financial information contained in a set
of financial statements that comply with IFRS. The framework
sets guidelines and should not be seen as a constitution;
nothing in the framework overrides any specific standard.
The objective of financial statements is to provide
information about the financial position (statement of
financial position), performance (statement of comprehensive
income), and changes in financial position (statement of
cash flows) of an entity that is useful to a wide range of
users in making economic decisions. Users of financial
information include present and potential capital providers,
employees, lenders, suppliers, customers, and the
government. Financial statements also show the results of
management's stewardship of the resources entrusted to it. |
|---|