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The conceptual framework for financial reporting sets out the concepts that underlie the preparation and presentation of financial statements for users. The objectives of financial statements are to provide information about the financial position, performance, and changes in the financial position of an entity that is useful to a wide range of users in making economic decisions. Users of accounting information are classified into internal and external users.
According to the Framework of IAS/IFRS, the underlying assumptions for the preparation of financial statements are accrual basis and going concern basis.
Required:
a) State TWO (2) internal users and TWO (2) external users of accounting information and their information needs.
(4 marks)
b) Identify and explain FOUR (4) elements of financial statements.
(8 marks)
c) Identify FOUR (4) benefits that financial statements provide to its users.
(4 marks)
d) Explain what is meant by accrual basis of accounting. Illustrate your answer with a suitable example.
(2 marks)
e) Explain what is meant by going concern basis.
(2 marks)
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
The conceptual framework for financial reporting sets out the concepts that underlie the preparation and presentation of financial statements for users. The objectives of financial statements are to provide information about the financial position, performance, and changes in the financial position of an entity that is useful to a wide range of users in making economic decisions. Users of accounting information are classified into internal and external users.
According to the Framework of IAS/IFRS, the underlying assumptions for the preparation of financial statements are accrual basis and going concern basis.
Required:
a) State TWO (2) internal users and TWO (2) external users of accounting information and their information needs.
(4 marks)
b) Identify and explain FOUR (4) elements of financial statements.
(8 marks)
c) Identify FOUR (4) benefits that financial statements provide to its users.
(4 marks)
d) Explain what is meant by accrual basis of accounting. Illustrate your answer with a suitable example.
(2 marks)
e) Explain what is meant by going concern basis.
(2 marks)
Find Related Questions by Tags, levels, etc.
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