Role of Framework

Role of Framework

1. Nature of Reporting Entity

   • Defines what a reporting entity is
   • Minimum requirements for financial reports

2. Qualitative Characteristics

   • Ensure all financial reports give a true and fair view of business performance.
   • Fundamental Qualitative Characteristics (2)
     • Faithful Representation
     • Relevance
   • Enhancing Qualitative Characteristics (4)
     • Understandability
     • Comparability
     • Verifiability
     • Timeliness

3. Objectives of GPFR

   • To provide information to users that is useful for making and evaluating decisions
   • To ensure reports can be used to hold companies accountable for the resources they control

4. Elements of Financial Reports

   • Recognition and Measurement Criteria
     • Measurement
       • Asset
       • Liability
       • Income
       • Expense
     • Recognition Criteria
       • Probability that will occur
       • Measured Reliably