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General Purpose Financial Reporting Framework

This document provides an overview of the conceptual framework for financial reporting. It discusses the objective of general purpose financial reporting, which is to provide information about an entity's economic resources, claims against the entity, and changes in resources and claims. This information is useful to users for making decisions if it possesses qualitative characteristics like relevance, faithful representation, comparability, verifiability, timeliness, and understandability. The framework also discusses financial statements and the reporting entity, outlining that consolidated financial statements should be used to report the economic activities and circumstances of a parent and its subsidiaries as a single economic entity.

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63 views1 page

General Purpose Financial Reporting Framework

This document provides an overview of the conceptual framework for financial reporting. It discusses the objective of general purpose financial reporting, which is to provide information about an entity's economic resources, claims against the entity, and changes in resources and claims. This information is useful to users for making decisions if it possesses qualitative characteristics like relevance, faithful representation, comparability, verifiability, timeliness, and understandability. The framework also discusses financial statements and the reporting entity, outlining that consolidated financial statements should be used to report the economic activities and circumstances of a parent and its subsidiaries as a single economic entity.

Uploaded by

sadegh.ab1380
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Conceptual Framework

CONTENTS
from paragraph
STATUS AND PURPOSE OF THE CONCEPTUAL FRAMEWORK SP1.1

CHAPTER 1—THE OBJECTIVE OF GENERAL PURPOSE


FINANCIAL REPORTING
INTRODUCTION 1.1
OBJECTIVE, USEFULNESS AND LIMITATIONS OF GENERAL PURPOSE
FINANCIAL REPORTING 1.2
INFORMATION ABOUT A REPORTING ENTITY’S ECONOMIC RESOURCES,
CLAIMS AGAINST THE ENTITY AND CHANGES IN RESOURCES AND
CLAIMS 1.12
Economic resources and claims 1.13
Changes in economic resources and claims 1.15
Financial performance reflected by accrual accounting 1.17
Financial performance reflected by past cash flows 1.20
Changes in economic resources and claims not resulting from financial
performance 1.21
INFORMATION ABOUT USE OF THE ENTITY’S ECONOMIC RESOURCES 1.22

CHAPTER 2—QUALITATIVE CHARACTERISTICS OF USEFUL


FINANCIAL INFORMATION
INTRODUCTION 2.1
QUALITATIVE CHARACTERISTICS OF USEFUL FINANCIAL INFORMATION 2.4
Fundamental qualitative characteristics 2.5
Enhancing qualitative characteristics 2.23
THE COST CONSTRAINT ON USEFUL FINANCIAL REPORTING 2.39

CHAPTER 3—FINANCIAL STATEMENTS AND THE


REPORTING ENTITY
FINANCIAL STATEMENTS 3.1
Objective and scope of financial statements 3.2
Reporting period 3.4
Perspective adopted in financial statements 3.8
Going concern assumption 3.9
THE REPORTING ENTITY 3.10
Consolidated and unconsolidated financial statements 3.15

CHAPTER 4—THE ELEMENTS OF FINANCIAL STATEMENTS


INTRODUCTION 4.1
DEFINITION OF AN ASSET 4.3
Right 4.6
Potential to produce economic benefits 4.14

continued...

A10 © IFRS Foundation

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