The New Financial Framework

The original framework was approved in July 1989, and was adopted in April 2001 by the IASB. It sets out the concepts concerning the preparation and the presentation of fiscal reports for users which atomic number 18 external to the fraternity. However, during these last twain decades, the market, the stage business practices, as live only as the economical environment, obligate evolved. The current framework, no endless reflecting the business reality, is then organism updated by the IASB and the FASB. The send-off stagecoach of this new Joint abstract example Project, regarding the objectives of financial statements and its soft characteristics was completed on the 28th of December. We will first determine the main strengths and weaknesses of these two sections, and then evaluate the changes that have been made. THE STRENGTHS AND WEAKNESSES OF THE FISRT TWO CURRENT SECTIONS A framework is a statement of generally accepted hypothetical principles [] that pro vides the basis for both the ontogenesis of new reporting practices and the evaluation of existing ones (Ernst & Young, 2009). STRENGTHS ? Informed economic decisions As we said before, the Framework governs published financial statements.

These statements ar intended to provide multipurpose nurture to different external users, who have different randomness needs: it helps them manufacture conscious economic decisions based on reliable information. To enable the users to make these informed decisions, financial statements mustiness show comparability and understandability, as well as faithful representati on (relevance and reliability): these are th! e qualitative characteristics given by the Framework. => The current framework and accounting concepts enhances the faithful representation of a companys financial position, and therefore gives the external users the reliable information that they need to make sound decisions. The fist two sections leave behind external users to have a wide view of the company. ? defense of the different...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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