Search results
People also ask
Why do we need a concept of the reporting entity?
Should a conceptual framework define a reporting entity?
What is an entity in financial reporting?
Should a reporting entity be a general purpose external financial reporting entity?
Other aspects of the Conceptual Framework—the qualitative characteristics of, and the cost constraint on, useful financial information, a reporting entity concept, elements of financial statements, recognition and derecognition, measurement, presentation and disclosure — flow logically from the objective.
- 321KB
- 86
In its most general sense, the term reporting entity is used to refer to the specific entity that is the subject of a particular set of financial reports. However, merely describing or defining a reporting entity as being an entity that reports would not be helpful.
Statement of Accounting Concepts SAC 1 Definition of the Reporting Entity (as amended) is set out in paragraphs. 1 – 41. This Statement should be read in the context of Australian Accounting Standards and the Framework for the Preparation and Presentation of Financial Statements.
- 480KB
- 11
The Conceptual Framework is a body of interrelated objectives and fundamentals. The objectives identify the goals and purposes of financial reporting, and the fundamentals are the underlying concepts that help achieve those objectives.
The objective of the reporting entity concept is to describe a reporting entity. The description of a reporting entity is consistent with the objective of general purpose financial reporting.
In the course of considering applying the revised Conceptual Framework for Financial Reporting (RCF) in Australia, the AASB identified an inconsistency in the definition of ‘reporting entity’ in the RCF and the widely used and understood Australian ‘reporting entity concept’.
reporting entity concept should be a broad concept that encompasses all types of entities, not only those entities that have external users who are unable to demand the information they require and, therefore, must rely on information provided by the entity.
