Sections of the IASB’ Framework
1. Introduction - purpose of the framework, uses and their information needs. The introduction defines what the framework is, its purpose and describes the nature, function and limits of financial reporting.
2. The objective of financial statements - These guides the prepare towards providing information about the financial position, changes in equity, and financial performance for the entity.
3. Underlying assumptions - These help the prepare to understand the key assumptions underlying the preparation of accounts of accrual, giving concern etc.
4. Qualitative characteristics of financial statements - These assist the prepare to know the characteristics he should include in his financial statements e.g. understand ability, relevant, reliability, comparability etc.
5. The elements of financial statements - These assist the prepare in identifying the building blocks of financial statements such as assets, liabilities, equity, income and expenses.
6. Recognition of the elements of financial statements - These provide the criteria for the inclusion of various elements in the financial statements.
7. Measurements of the elements of financial statements - This provides guidelines or how to measure various items and record them e.g. historical cost, current Cost, reliable value etc.
marto answered the question on February 13, 2019 at 08:03