Framework for the Preparation and Presentation of Financial Statements Sample Essay

The Australian Accounting Standards Board ( AASB ) is implementing the Financial Reporting Council’s policy of following the Standards of the International Accounting Standards Board ( IASB ) for application to describing periods get downing on or after 1 January 2005. The AASB is replacing relevant bing AASB Standards with Australian Standards equivalent to those of the IASB. Consequently. the parts of the bing Australian conceptual model ( SAC 3 Qualitative Characteristics of Financial Information and SAC 4 Definition and Recognition of the Elementss of Financial Statements ) that convergence with the Framework for the Preparation and Presentation of Financial Statements issued by the IASB are being replaced by this Framework to guarantee that there is consistence when: ( a ) the Australian equivalents to IASB Standards refer to the Framework. For illustration. AASB 108 Accounting Policies. Changes in Accounting Estimates and Mistakes outlines a hierarchy to be followed in developing an accounting policy when an Australian Accounting Standard does non specifically turn to the dealing. The Framework developed by the IASB is an built-in portion of this hierarchy ; and

( B ) the AASB evaluates proposed Standards for application in Australia. The AASB has decided it will go on to publish sector-neutral dictums. that is. dictums applicable to both for-profit and not-for-profit entities. including public sector entities. Except for dictums that are specific to the not-for-profit or public sectors or that are of a strictly domestic nature. the AASB is utilizing the IASB dictums as the “foundation” dictums to which it adds material detailing the range and pertinence of a dictum in the Australian environment. Additions are made. where necessary. to broaden the content to cover sectors non addressed by an IASB dictum and domestic. regulative or other issues.

We will write a custom essay sample on
Framework for the Preparation and Presentation of Financial Statements Sample Essay
or any similar topic only for you
Order now

Main Features of this Model
Citation
The Framework for the Preparation and Presentation of Financial Statements is cited in Australian Accounting Standards as the Framework.

Application Date
The Framework is applicable to one-year coverage periods get downing on or after 1 January 2005. To advance comparison among the fiscal studies of Australian entities. early acceptance of the Framework is non permitted. Main Issues

The Framework sets out the:
( a ) aim of fiscal studies ;
( B ) premises underlying fiscal studies ;
( degree Celsius ) qualitative features of fiscal studies ;
( vitamin D ) elements of fiscal studies ; and
( vitamin E ) acknowledgment standards for the elements of fiscal statements.




Comparison WITH INTERNATIONAL
Pronouncements
This Framework and the IASB Framework
This Framework is tantamount to the Framework for the Preparation and Presentation of Financial Statements issued by the IASB. Paragraphs that have been added to this Framework ( and do non look in the text of the IASB Framework ) are identified with the prefix “Aus” . followed by the figure of the relevant IASB paragraph and denary enumeration. This Model and IPSASs


International Public Sector Accounting Standards ( IPSASs ) are issued by the Public Sector Committee of the International Federation of Accountants. At present. there is no tantamount IPSAS that specifically contains a model. However. the definitions of the elements of fiscal statements in IPSASs are. in many instances. equivalent to the definitions in the Framework. The chief differences between the IPSAS definitions and the Framework relate to the impression of income ( which includes additions ) and the impression of gross. and the impression of disbursal ( which includes losingss ) .

FRAMEWORK FOR THE PREPARATION AND
Presentation OF FINANCIAL STATEMENTS
Application
Aus1. 1 The constructs in this Framework are non set out as demands for the intent of fixing general purpose fiscal studies. This is consistent with the:
( a ) intent of Statements of Accounting Concepts set out in Policy Statement 5 The Nature and Purpose of Statements of Accounting Concepts ;
( B ) non-mandatory position of Statements of Accounting Concepts under Professional Statement APS 1 Conformity with Accounting Standards ; and
( degree Celsius ) Australian Securities and Investments Commission
Act 2001. subdivision 227 ( 1 ) .
Aus1. 2 This Model applies to periods get downing on or after 1 January 2005.
Aus1. 3 This Framework shall non be applied to one-year coverage periods get downing before 1 January 2005.
Aus1. 4 When applicable. this Framework supersedes:
( a ) Statement of Accounting Concept SAC 3 Qualitative
Features of Financial Information as issued in
August 1990 ; and
( B ) Statement of Accounting Concept SAC 4 Definition and
Recognition of the Elementss of Fiscal Statements as issued in March 1995.
Aus1. 5 SAC 3 and SAC 4 remain applicable until superseded by this Framework.
Aus1. 6 The term fiscal statements in the rubric of this Framework means a fiscal study.
















×

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out