Financial Reporting

The IASB Framework sets out the concepts and principles underlying the preparation of monetary statements for notification to a wide range of users. This framework acts as a guideline, a regulation and sets out the cathode-ray oscilloscope of International news report Standards. It represents the very foundation of international financial reporting and represents the terra firma from which all IASs emanate. The framework consists of the following chapters: · Objectives of financial statements; · Qualitative characteristics that find the decision usefulness of education contained in the financial statements; and · Definition, cite and measurement of elements from which financial statements are constructed.

Objectives of financial statements The objective of financial statements is to provide information on: · Financial eyeshot; · Changes in financial position; and · Financial performance of an organisation Financial Position teaching on the financial position of an organisation include information about economic resources controlled by the entity, the financial structure, the liquidity and solvency position of the entity and also the ability of that entity to adapt to a changing and ever-changing environment. Economic resources controlled by an entity Information about economic resources under the entitys control will help assess the come of future economic benefits that will probably be generated. Disclosing such(prenominal) information will assist the user in fetching economic decisions. For instance, an investor will be in a ameliorate position to take more informed investing decisions; an employee whitethorn be more aware about any scope for salary increases and bonuses. Financial structure This refers to the mix of debt and equity of an entity. The more debt a company takes on, the greater the financial risk of infection and hence the risk of bankruptcy. The financial structure... If you want to get a full essay, raise it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper