Framework for the Preparation and Presentation of Financial Statements.docx

1、Framework for the Preparation and Presentation of Financial StatementsFramework for the Preparation and Presentation of Financial StatementsThe IASB Framework was approved by the IASC Board in April 1989 for publication in July 1989, and adopted by the IASB in April 2001.Contents paragraphsPrefaceIn

2、troduction1-11Purpose and Status1-4Scope5-8Users and Their Information Needs9-11The Objective of Financial Statements12-21Financial Position, Performance and Changes in Financial Position15-21Notes and Supplementary Schedules21Underlying Assumptions22-23Accrual Basis22Going Concern23Qualitative Char

3、acteristics of Financial Statements24-46Understandability25Relevance26-30Materiality29-30Reliability31-38Faithful Representation33-34Substance Over Form35Neutrality36Prudence37Completeness38Comparability39-42Constraints on Relevant and Reliable Information43-45Timeliness43Balance between Benefit and

4、 Cost44Balance between Qualitative Characteristics45True and Fair View/Fair Presentation46The Elements of Financial Statements47-81Financial Position49-52Assets53-59Liabilities60-64Equity65-68Performance69-73Income74-77Expenses78-80Capital Maintenance Adjustments81Recognition of the Elements of Fina

5、ncial Statements82-98The Probability of Future Economic Benefit85Reliability of Measurement86-88Recognition of Assets89-90Recognition of Liabilities91Recognition of Income92-93Recognition of Expenses94-98Measurement of the Elements of Financial Statements99-101Concepts of Capital and Capital Mainten

6、ance102-110Concepts of Capital102-103Concepts of Capital Maintenance and the Determination of Profit104-110 PrefaceFinancial statements are prepared and presented for external users by many entities around the world. Although such financial statements may appear similar from country to country, ther

7、e are differences which have probably been caused by a variety of social, economic and legal circumstances and by different countries having in mind the needs of different users of financial statements when setting national requirements. These different circumstances have led to the use of a variety

8、 of definitions of the elements of financial statements; that is, for example, assets, liabilities, equity, income and expenses. They have also resulted in the use of different criteria for the recognition of items in the financial statements and in a preference for different bases of measurement. T

9、he 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 these differences by seeking to harmonise regulations, accounting standards and procedures relating to the preparation and p

10、resentation of financial statements. It believes that further harmonisation can best be pursued by focusing on financial statements that are prepared for the purpose of providing information that is useful in making economic decisions.The Board of IASC believes that financial statements prepared for

11、 this purpose meet the common needs of most users. This is because nearly all users are making economic decisions, for example, to:(a) decide when to buy, hold or sell an equity investment;(b) assess the stewardship or accountability of management;(c) assess the ability of the entity to pay and prov

12、ide other benefits to its employees;(d) assess the security for amounts lent to the entity;(e) determine taxation policies;(f) determine distributable profits and dividends;(g) prepare and use national income statistics; or(h) regulate the activities of entities.The Board recognises, however, that g

13、overnments, in particular, may specify different or additional requirements for their own purposes. These requirements should not, however, affect financial statements published for the benefit of other users unless they also meet the needs of those other users. Financial statements are most commonl

14、y prepared in accordance with an accounting model based on recoverable historical cost and the nominal financial capital maintenance concept. Other models and concepts may be more appropriate in order to meet the objective of providing information that is useful for making economic decisions althoug

15、h there is presently no consensus for change. This Framework has been developed so that it is applicable to a range of accounting models and concepts of capital and capital maintenance. IntroductionPurpose and Status1. This Framework sets out the concepts that underlie the preparation and presentati

16、on of financial statements for external users. The purpose 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

17、regulations, accounting standards and procedures relating to the presentation of financial statements by providing a basis for reducing the number of alternative accounting treatments permitted by International Accounting Standards;(c) assist national standard-setting bodies in developing national s

18、tandards;(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 Internat

19、ional Accounting Standards;(f) assist users of financial statements in interpreting the information contained in financial statements prepared in conformity with International Accounting Standards; and(g) provide those who are interested in the work of IASC with information about its approach to the

20、 formulation of International Accounting Standards.2. This 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.3. The Board of

21、IASC recognises that in a limited number of cases there may be a conflict between the Framework and an International Accounting Standard. In those cases where there is a conflict, the requirements of the International Accounting Standard prevail over those of the Framework. As, however, the Board of

22、 IASC will be guided by the Framework in the development of future Standards and in its review of existing Standards, the number of cases of conflict between the Framework and International Accounting Standards will diminish through time. 4. The Framework will be revised from time to time on the bas

23、is of the Boards experience of working with it.Scope5. The Framework deals with:(a) the objective of financial statements;(b) the qualitative characteristics that determine the usefulness of information in financial statements;(c) the definition, recognition and measurement of the elements from whic

24、h financial statements are constructed; and(d) concepts of capital and capital maintenance.6. The Framework is concerned with general purpose financial statements (hereafter referred to as “financial statements”) including consolidated financial statements. Such financial statements are prepared and

25、 presented at least annually and are directed toward the common information needs of a wide range of users. Some of these users may require, and have the power to obtain, information in addition to that contained in the financial statements. Many users, however, have to rely on the financial stateme

26、nts as their major source of financial information and such financial statements should, therefore, be prepared and presented with their needs in view. Special purpose financial reports, for example, prospectuses and computations prepared for taxation purposes, are outside the scope of this Framewor

27、k. Nevertheless, the Framework may be applied in the preparation of such special purpose reports where their requirements permit.7. Financial statements form part of the process of financial reporting. A complete set of financial statements normally includes a balance sheet, an income statement, a s

28、tatement of changes in financial position (which may be presented in a variety of ways, for example, as a statement of cash flows or a statement of funds flow), and those notes and other statements and explanatory material that are an integral part of the financial statements. They may also include

29、supplementary schedules and information based on or derived from, and expected to be read with, such statements. Such schedules and supplementary information may deal, for example, with financial information about industrial and geographical segments and disclosures about the effects of changing pri

30、ces. Financial statements do not, however, include such items as reports by directors, statements by the chairman, discussion and analysis by management and similar items that may be included in a financial or annual report.8. The Framework applies to the financial statements of all commercial, indu

31、strial and business reporting entities, whether in the public or the private sectors. A reporting entity is an entity for which there are users who rely on the financial statements as their major source of financial information about the entity.Users and Their Information Needs9. The users of financ

32、ial statements include present and potential investors, employees, lenders, suppliers and other trade creditors, customers, governments and their agencies and the public. They use financial statements in order to satisfy some of their different needs for information. These needs include the following:(a) Investors. The providers of risk capital and their advisers are concerned with the risk inherent in, an