Outline the roles of International Financial Reporting Standards in preparation of financial statements.

      

Outline the roles of International Financial Reporting Standards in preparation of financial statements.

  

Answers


Kavungya
• They prescribe the approved method of accounting and disclosure.
• Where one or more methods of accounting are acceptable, they prescribe one method which
is preferred and called the benchmark treatment and the allowed alternative treatment and
conditions under which that allowed alternative is applied.
• They prohibit, discourage and restrict use of methods which will not lead to a true and fair
view of the financial statements.
• They increase comparability of financial statements. Application of appropriate IFRS reduces
areas of uncertainty and subjectivity in financial statements.
Kavungya answered the question on April 15, 2021 at 20:17


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