What is the objective of financial reporting as indicated in the conceptual framework?
The revised Conceptual Framework for Financial Reporting (Conceptual Framework) issued in March 2018 is effective immediately for the International Accounting Standards Board (Board) and the IFRS Interpretations Committee. For companies that use the Conceptual Framework to develop accounting policies when no IFRS Standard applies to a particular transaction, the revised Conceptual Framework is effective for annual reporting periods beginning on or after 1 January 2020, with earlier application permitted. Show
The Conceptual Framework sets out the fundamental concepts for financial reporting that guide the Board in developing IFRS Standards. It helps to ensure that the Standards are conceptually consistent and that similar transactions are treated the same way, so as to provide useful information for investors, lenders and other creditors. The Conceptual Framework also assists companies in developing accounting policies when no IFRS Standard applies to a particular transaction, and more broadly, helps stakeholders to understand and interpret the Standards. The 2018 revised Conceptual Framework sets out:
Conceptual Framework for Financial Reporting was issued by the International Accounting Standards Board in September 2010. It was revised in March 2018.
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Student 6 months ago What is the primary objective of financial reporting as indicated in the conceptual framework? a. Provide information that is useful to those making investing and credit decisions. b. Provide information that is useful to management. c. Provide information about those investing in the entity. d. All of these answer choices are correct All replies Expert Answer 6 months ago The correct answer is d. All of the answer choices are correct. Explanation : The primary objective of financial reporting is providing useful information which is helpful to the present and potential investors, the creditors, as well as other users. It helps them to make rational decisions. The conceptual framework basically is a document that sets the objectives for the general purpose of financial reporting.It is as important to the investment, credit decisions/investors as much to management because the financial reporting will help the management to make decisions based on the entity's financial position. Related Answered QuestionsHow Expert Q&A works: Ask your study questions to our Experts. Receive an answer explained step-by-step. Get your answer as fast as 30 minutes. What is the objective of financial reporting under the revised conceptual framework for financial reporting?The chapter notes that objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions relating to providing resources to the entity.
What is the objective of financial reporting?The objective of financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders, and other creditors in making decisions about providing resources to the entity.
What are the objectives of Conceptual Framework?The primary purpose of the Conceptual Framework was to assist the IASB in the development of future IFRSs and in its review of existing IFRSs. The Conceptual Framework may also assist preparers of financial statements in developing accounting policies for transactions or events not covered by existing standards.
What is the objective of financial statements according to the Conceptual Framework quizlet?The objective of financial statements is to provide information about an entity's assets, liabilities, equity, income and expenses that is useful to financial statements users in assessing the prospects for future net cash inflows to the entity and in assessing management's stewardship of the entity's resources.
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