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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.
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Feb 1, 2019 · A reporting entity (or reporting unit) is an entity that voluntary chooses, or is required by law, to prepare general purpose financial statements. Entity meaning. The Conceptual Framework provides the following entity meaning [Conceptual Framework 3.10 – 3.14]:
The reporting entity. 3.10 A reporting entity is an entity that is required, or chooses, to prepare financial statements. A reporting entity can be a single entity or a portion of an entity or can comprise more than one entity.
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.
- Scope
- Chapter 1: The Objective of General Purpose Financial Reporting
- Chapter 2: QualITaTive CharAcTerIsTics of Useful Financial InForMaTion
- Chapter 3: Financial statements and The Reporting Entity
- Chapter 4: The Framework: The Remaining Text
The Framework addresses: 1. the objective of general purpose financial reporting 2. qualitative characteristics of useful financial information 3. financial statements and the reporting entity 4. the elements of financial statements 5. recognition and derecognition 6. measurement 7. presentation and disclosure 8. concepts of...
The primary users of general purpose financial reporting are present and potential investors, lenders and other creditors, who use that information to make decisions about buying, selling or holding equity or debt instruments, providing or settling loans or other forms of credit, or exercising rights to vote on, or otherwise influence, man...
The qualitative characteristics of useful financial reporting identify the types of information are likely to be most useful to users in making decisions about the reporting entity on the basis of information in its financial report. The qualitative characteristics apply equally to financial information in general purpose fin...
Objective and scope of financial statements 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 th...
Underlying assumption The IFRS Framework states that the going concern assumption is an underlying assumption. Thus, the financial statements presume that an entity will continue in operation indefinitely or, if that presumption is not valid, disclosure and a different basis of reporting are required. [F 4.1] The elements of fin...
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.
purpose financial reporting, the circumscribed area, as a reporting entity, must provide general purpose financial reports, including a full set of financial statements, to resource providers.
