Framework for the Preparation and Prentation of Financial Statements
The IASB Framework was approved by the IASC Board in April 1989 for publication in July 1989, and adopted by the IASB in April 2001.
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Framework
30
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IASCF
苁蓉的功效C ONTENTS
paragraphs
PREFACE INTRODUCTION 1–11Purpo and status 1–4Scope
青蟹养殖5–8Urs and their information needs
9–11THE OBJECTIVE OF FINANCIAL STATEMENTS
12–21Financial position, performance and changes in financial position
15–21
Notes and supplementary schedules 21UNDERLYING ASSUMPTIONS 22–23
Accrual basis 22Going concern
23QUALITATIVE CHARACTERISTICS OF FINANCIAL STATEMENTS 24–46唐狗
Understandability 25Relevance
26–30Materiality 29–30Reliability
31–38Faithful reprentation 33–34
Substance over form 35Neutrality 36Prudence 37Completeness 38Comparability
39–42Constraints on relevant and reliable information
43–45
Timeliness
当归尾的功效与作用43Balance between benefit and cost
槲皮44Balance between qualitative characteristics 45True and fair view/fair prentation
46THE ELEMENTS OF FINANCIAL STATEMENTS 47–81Financial position 49–52Asts 53–59Liabilities 60–64Equity 65–68Performance 69–73Income 74–77Expens
78–80
涣散的意思
Capital maintenance adjustments
81
Framework
RECOGNITION OF THE ELEMENTS OF FINANCIAL STATEMENTS82–98 The probability of future economic benefit85 Reliability of measurement86–88 Recognition of asts89–90 Recognition of lia
bilities91 Recognition of income92–93 Recognition of expens94–98 MEASUREMENT OF THE ELEMENTS OF FINANCIAL STATEMENTS99–101 CONCEPTS OF CAPITAL AND CAPITAL MAINTENANCE102–110 Concepts of capital102–103 Concepts of capital maintenance and the determination of profit104–110
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Framework
Preface
Financial statements are prepared and prented for external urs by many entities around the world. Although such financial statements may appear similar from country to country, there are differences which have probably been caud by a variety of social, economic and legal circumstances and by different countries having in mind the needs of different urs of financial statements when tting national requirements.
The different circumstances have led to the u of a variety of definitions of the elements of financial statements; that is, for example, asts, liabilities, equity, income and expens. They have
also resulted in the u of different criteria for the recognition of items in the financial statements and in a preference for different bas of measurement. The scope of the financial statements and the disclosures made in them have also been affected.
The International Accounting Standards Committee (IASC) is committed to narrowing the differences by eking to harmoni regulations, accounting standards and procedures relating to the preparation and prentation of financial statements. It believes that further harmonisation can best be pursued by focusing on financial statements that are prepared for the purpo of providing information that is uful in making economic decisions.
The Board of IASC believes that financial statements prepared for this purpo meet the common needs of most urs. This is becau nearly all urs are making economic decisions, for example, to:
(a)decide when to buy, hold or ll an equity investment;
(b)asss the stewardship or accountability of management;
(c)asss the ability of the entity to pay and provide other benefits to its employees;
(d)asss the curity for amounts lent to the entity;
(e)determine taxation policies;
(f)determine distributable profits and dividends;
(g)prepare and u national income statistics; or
(h)regulate the activities of entities.
The Board recognis, however, that governments, in particular, may specify different or additional requirements for their own purpos. The requirements should not, however, affect financial statements published for the benefit of other urs unless they also meet the needs of tho other urs.
Financial statements are most commonly prepared in accordance with an accounting model bad on recoverable historical cost and the nominal financial capital maintenance concept. O ther models and concepts may be more appropriate in order to meet the objective of providing information that is uful for making economic decisions although there is prently no connsus for change. This Framework has been developed so that it is applicable to a range of accounting models and concept
s of capital and capital maintenance.
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Framework Introduction
Purpo and status
1This Framework ts out the concepts that underlie the preparation and prentation of financial statements for external urs. The purpo of the Framework is to:
(a)assist the Board of IASC in the development of future International
Accounting Standards and in its review of existing International
Accounting Standards;
(b)assist the Board of IASC in promoting harmonisation of regulations,
accounting standards and procedures relating to the prentation of
financial statements by providing a basis for reducing the number of
alternative accounting treatments permitted by International Accounting
Standards;
(c)assist national standard-tting bodies in developing national standards;
(d)assist preparers of financial statements in applying International
Accounting Standards and in dealing with topics that have yet to form the
subject of an International Accounting Standard;
(e)assist auditors in forming an opinion as to whether financial statements
conform with International Accounting Standards;
(f)assist urs of financial statements in interpreting the information
contained in financial statements prepared in conformity with
International Accounting Standards; and
(g)provide tho who are interested in the work of IASC with information
立秋短信about its approach to the formulation of International Accounting
Standards.
2This Framework is not an International Accounting Standard and hence does not define standards for any particular measurement or disclosure issue. Nothing in this Framework overrides any specific International Accounting Standard.
3The Board of IASC recognis that in a limited number of cas there may be a conflict between the Framework and an International Accounting Standard.
In tho cas where there is a conflict, the requirements of the International Accounting Standard prevail over tho of the Framework. As, however, the Board of IASC will be guided by the Framework in the development of future Standards and in its review of existing Standards, the number of cas of conflict between the Framework and International Accounting Standards will diminish through time.
4The Framework will be revid from time to time on the basis of the Board’s experience of working
with it.
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