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assess t%e a#ilit$ f t%e enterprise t pa$ and pr *ide t%er #enefits t its empl $ees. -c. prepare and "se nati nal inc me statistics. t%at is) f r e!ample) assets) lia#ilities) e+"it$) inc me and e!penses' T%e$ %a*e als res"lted in t%e "se f different criteria f r t%e rec (niti n f items in t%e financial statements and in a preference f r different #ases f meas"rement' T%e sc pe f t%e financial statements and t%e discl s"res made in t%em %a*e als #een affected' T%e Internati nal Acc "ntin( Standards C mmittee -IASC. determine distri#"ta#le pr fits and di*idends. r -%. determine ta!ati n p licies. -(. decide &%en t #"$) % ld r sell an e+"it$ in*estment. asses t%e sec"rit$ f r am "nts lent t t%e enterprise. assess t%e ste&ards%ip r acc "nta#ilit$ f mana(ement. is c mmitted t narr &in( t%ese differences #$ see/in( t %arm nise re("lati ns) acc "ntin( standards and pr ced"res relatin( t t%e preparati n and presentati n f financial statements' It #elie*es t%at f"rt%er %arm nisati n can #est #e p"rs"ed #$ f c"sin( n financial statements t%at are prepared f r t%e p"rp se f pr *idin( inf rmati n t%at is "sef"l in ma/in( ec n mic decisi ns' T%e 0 ard f IASC #elie*es t%at financial statements prepared f r t%is p"rp se meet t%e c mm n needs f m st "sers' T%is is #eca"se nearl$ all "sers are ma/in( ec n mic decisi ns) f r e!ample) t 1 -a.FRAMEWORK FOR THE PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS Preface Financial statements are prepared and presented f r e!ternal "sers #$ man$ enterprises ar "nd t%e & rld' Alt% "(% s"c% financial statements ma$ appear similar fr m c "ntr$ t c "ntr$) t%ere are differences &%ic% %a*e pr #a#l$ #een ca"sed #$ a *ariet$ f s cial) ec n mic and le(al circ"mstances and #$ different c "ntries %a*in( in mind t%e needs f different "sers f financial statements &%en settin( nati nal re+"irements' T%ese different circ"mstances %a*e led t t%e "se f a *ariet$ f definiti ns f t%e elements f financial statements. -f. -#. re("late t%e acti*ities f enterprise' . -d. -e.

FRAMEWORK FOR THE PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS T%e 0 ard rec (nises) % &e*er) t%at ( *ernments) in partic"lar) ma$ specif$ different r additi nal re+"irements f r t%eir &n p"rp ses' T%ese re+"irements s% "ld n t) % &e*er) affect financial statements p"#lis%ed f r t%e #enefit f t%er "sers "nless t%e$ als meet t%e needs f t% se t%er "sers' Financial statements are m st c mm nl$ prepared in acc rdance &it% an acc "ntin( m del #ased n rec *era#le %ist rical c st and t%e n minal financial capital maintenance c ncepts' Ot%er m dels and c ncepts ma$ #e m re appr priate in rder t meet t%e #2ecti*e f pr *idin( inf rmati n t%at is "sef"l f r ma/in( ec n mic decisi ns alt% "(% t%ere is presentl$ n c nsens"s f r c%an(e' T%is frame& r/ %as #een de*el ped s t%at it is applica#le t a ran(e f acc "ntin( m dels and c ncepts f capital and capital maintenance' .