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- In December 2005, the Boards decided that they do not wish the reporting entity concept to specify which particular entities should be required (or encouraged) to prepare general purpose external financial reports.
www.ifrs.org/content/dam/ifrs/project/conceptual-framework-2010/ap5a-reporting-entity.pdf
People also ask
Should the reporting entity chapter describe an individual entity?
Why do we need a concept of the reporting entity?
Who qualifies as a reporting entity?
What constitutes an entity for financial reporting purposes?
Chapter 2 addresses this need in the Conceptual Framework by defining and describing the concept of the reporting entity in the context of general purpose financial reporting. Additional Information: Download Chapter 2; Press Release
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.
• Purpose of reporting entity chapter • Perspective of financial statements (entity vs proprietary) • Definition vs description of a reporting entity • Whether all legal entities should qualify as reporting entities • Must consolidated financial statements be presented together with separate financial statements?
A reporting entity is an entity that chooses, or is required, to present general purpose financial statements (paragraph 9); A reporting entity need not be a legal entity but could comprise a portion of an entity, or two or more entities (paragraph 10);
The new chapter describes a reporting entity as “a circumscribed area of economic activities that can be represented by general purpose financial reports that are useful to existing and potential investors, lenders, and other resource providers in making decisions about providing resources to the entity.”.
concepts statement no. 8—conceptual framework for financial reporting—chapter 2, the reporting entity
