Question

ANALYZE THE CONCEPTUAL AND REGULATORY FRAMAWORIS FOR FINANCAL REPORTING

Answer 1

The conceptual and regulatory framework for Financial Reporting

The primary purpose of the conceptual and regulatory framework is assist to the International Accounting Standard Board (IASB) for developing future International Financial Reporting Standard (IFRS) and review of existing IFRS.The conceptual framework also assist preparation of financial statements in develop accounting policies for transaction not covered by existing standards.

The conceptual and regulatory framework include,

1. The objective of general purpose of financial reporting

The general purpose of financial reporting are present the financial statement to investors,creditors and other stakeholders to take decisions.

2. The qualitative characteristics of useful financial information

The financial information useful at information is relevant and represents faithfully. The usefulness of financial information is increase when it is comparable, verifiable, timely represention and understandable.

3.The elements of financial statements

It include balance sheet items like assets, liabilities income statement items and as well as cashflow statement items.

4. The financial statements and the reporting entity

The information provided in financial statements balance sheet and profit and loss account and other financial statements. The reporting entity is an entity that is required to prepare financial statements.

5.Recognition of Information

Recognition is the process of incorporating the elements of financial statements item that meets the definition of an element and satisfies the criteria for recognition:

6.Measurement of Information

Measurement include assign monetary value and the elements of financial statements are recognised and reported.

7.Presentation and disclosure

The financial statement assertion all the proper information and disclosures are include the company  statements to fair and easy to understand.