- 10 Marks
PSAF – May 2020 – L1 – Q1d – General purpose financial reporting framework
Explain the connection between the Conceptual Framework, IPSAS, and RPGs, and illustrate a practical case where the Conceptual Framework is useful.
Question
Some accountants hold the view that development of a Conceptual Framework for General Purpose Financial Reporting (simply, the Conceptual Framework) in the Public Sector is needless and a mere information overload on the Accountants. This argument is predicated on the fact that the Conceptual Framework does not establish authoritative requirements for financial reporting by public sector entities that adopt IPSAS, nor does it override the requirements of the International Public Sector Accounting Standards (IPSAS) or the Recommended Practice Guides (RPGs).
Required:
i) Explain the connection between the Conceptual Framework on one hand and IPSAS and RPGs on the other hand.
(2 marks)
ii) Illustrate a practical case where the Conceptual Framework would be useful to an accountant in the preparation and presentation of a General Purpose Financial Report for his organization.
(4 marks)
iii) Explain TWO (2) constraints on information included in the General Purpose Financial Reports.
(4 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Conceptual Framework, IPSAS, Public Sector Accounting, RPGs
- Level: Level 2
- Topic: General purpose financial reporting framework
- Series: MAY 2020