Iasb Framework

The IASB Framework sets out the concepts and principles underlying the preparation of financial statements for presentation to a wide range of users. This framework acts as a guideline, a regulation and sets out the scope of International Accounting Standards. It represents the very foundation of international financial reporting and represents the basis from which all IASs emanate.

he framework consists of the following chapters:

· Objectives of financial statements;

· Qualitative characteristics that determine the decision usefulness of information contained in the financial statements; and

· Definition, recognition and measurement of elements from which financial statements are constructed.

Objectives of financial statements

The objective of financial statements is to provide information on:

· Financial position;

· Changes in financial position; and

· Financial performance of an organisation