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The Regulatory Framework – An International Perspective

International Journal of Applied Finance For Non-Financial Managers (ISSN: 1742-528X) Volume 2 Issue 1

Dr Philip E Dunn

Readers will be aware that all EU companies listed on a regulated market will be required to prepare their consolidated accounts in accordance with endorsed International Accounting Standards from 2005 onwards.

The IASB – International Accounting Standards Board issued its framework for the Preparation and Presentation of Financial Statements in 1989. This is referred to as its conceptual framework. The framework sets out the concepts that shape the preparation and presentation of financial statements for external users. The framework does not have the status of an accounting standard as also is the case with the ASB’s Statement of Principles. The IASB framework assists the IASB:

In addition, the framework may assist:

To ensure the framework provides useful information it identifies a range of user groups which include:

The framework comprises seven sections from paragraph 12-110 which cover areas as:

  1. The objective of financial statements;
  2. Underlying assumptions;
  3. Qualitative characteristics of financial information;
  4. The elements of financial statements;
  5. Recognition of the elements of financial statements;
  6. Measurement of the elements of financial statements;
  7. Concepts of capital maintenance.

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