Framework deals with:
A. Objective of Financial Statements.
B. The qualitative characteristics that determine the usefulness of information in financial statements.
C. The definition, recognition, and measurement of elements from which financial statements are constructed.
D. Concepts of capital and capital maintenance.
Framework concerned with general purpose financial statements including consolidated statements that are
- prepared at least annually
- directed towards the common information needs of a wide range of users.
Special Purpose Financial Statements are outside the Scope of Framework.
Applicability of Framework:
Financial Statements of all commercial, industrial, and business reporting enterprises whether public or private sector.
A reporting enterprise is an enterprise which there are users who rely on the FS as their major source of Financial Information about the enterprise.